German-based multinational software corporation SAP announced last week that it had launched a blockchain supply chain tracking system for the management of pharmaceutical products. 

On Wednesday, the enterprise announced the general availability of “SAP Information Collaboration Hub for Life Sciences” which aims to eliminate the problem of counterfeit drugs. The blockchain-based solution is said to help customers verify the product code, lot number, expiration date and a unique serial number embedded in the barcode against manufacturers’ data stored in the blockchain.

This is an initiative to help ensure compliance with the U.S. Drug Supply Chain Security Act (DSCSA). Accordingly, prescription drugs that are returned and intended for resale must be verified by wholesalers.

Plans to scale up the system to tackle a wider range of pharmaceutical supply chain processes are also being discussed. Despite its initial use for tracking the return of unused drugs to wholesalers, SAP has plans to scale up the system to tackle a wider range of pharmaceutical supply chain, according to Computer World.

“This blockchain product supports the industry’s need for an immutable and shared ledger, avoiding many complex integrations,” said Dr. Oliver Nuernberg – chief product owner, SAP for Life Sciences solution portfolio.

“With this product, we are offering a scalable and secure solution to pharmaceutical manufacturers and U.S. wholesalers to comply with the upcoming regulatory requirements for verification.” Dr. Nuernberg added.

Major pharmaceutical companies have been reportedly involved in the development of the software, including AmerisourceBergen, Boehringer Ingelheim AG & Co KG, GlaxoSmithKline Plc, and Merck Sharp & Dohme.