Legal uncertainty slows adoption of pharma RFID tracking

A new ABI Research study of radio frequency identification technology tracking in the pharmaceutical industry, anticipates that no more than about 10 medicines will be tagged on a large scale during 2006. This contrasts with the optimism of a year ago, when the evidence suggested a nearly 3.5-fold increase in life-sciences RFID transponder shipments between 2005 and 2006.

According to Sara Shah, ABI Research's industry analyst for RFID and machine-to-machine research, the slowdown may be attributed to cost, as well as to a retreat from the "irrational exuberance" of early market hype and a desire to execute small-scale pilots before committing to full deployments.

One important inhibitor of this market concerns legislation "on hold." The US Prescription Drug Marketing Act of 1988 requires biotechnology and pharmaceutical manufacturers to prove they have processes in place to prevent the diversion of drugs. This encompasses the idea of "pedigree," or the ability to trace a shipment's "chain of custody" at all stages from manufacturing to delivery.