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R.I.P. for RFID?

The global market for RFID technologies is more than $6 billion a year—but healthcare comprises only a small percentage of that number. Here’s a look at RFID’s role in the healthcare packaging sector.

RFID refrigerator
RFID refrigerator

A decade ago, industry was buzzing with the promise of Radio Frequency Identification. Pfizer, GlaxoSmithKline, and Purdue Pharma set the example by successfully tagging Viagra, OxyContin, and Trizivir, an HIV medication, with RFID to track and trace these drugs through the supply chain. But other pharmaceutical companies did not follow suit. Today, RFID tagging at the primary packaging level is almost nonexistent.

The fervor over RFID was driven in part by California’s e-pedigree law requiring a unique identifier on each container of prescription drugs. While the law does not mandate specific technologies, RFID and 2D bar codes were identified as the two methods most likely to meet the law’s requirements. Today, most pharmaceutical companies are moving toward 2D bar codes to meet e-pedigree requirements, while RFID continues to be used mostly at the case and pallet level.

Dirk Rodgers, an independent consultant, Dirk Rodgers Consulting LLC, believes that RFID will only be used at the unit level for tracking pharmaceuticals if industry mandates it—and that is unlikely to occur. “There are a lot of people who don’t want to spend the money on RFID equipment,” he says, “and they have concerns about how it works.”

At what price?

One of the reasons RFID has not been more widely adopted for supply chain logistics is cost. “Companies are concerned with the unit cost of RFID tags and not necessarily cost of ownership through their internal production lines,” says Bob Celeste, director of healthcare with the healthcare group for GS1 US, an organization that designs and implements global standards to improve supply chain efficiency. Many are favoring 2D bar codes because more and more companies further down the supply chain have already invested in the equipment needed to read these bar codes, he says.

Peter Harrop, chairman of IDTechEx, a research firm that covers technologies across the value chain, also blames the lack of standards for hampering the adoption of RFID technologies. “People are dying because of counterfeit drugs going through the legitimate supply chain,” he says. “It doesn’t matter if industry chooses ultra-high frequency UHF or high-frequency HF. Any decision is better than none.”

Furthermore, technical difficulties can play a role in limiting the use of RFID at the unit level. One of the benefits of RFID, says Rodgers, is you don’t need line-of-sight to read it, as you do with bar codes. However, this can also create problems: “If you’re just trying to read one bottle in front of you, but you’re standing in a distribution center where all the bottles and cases have RFID tags on them, it’s going to be hard to say whether the serial number I read is the one in my hand, the one that’s behind me on the shelf, or one of the many that are around it,” he explains. “You really can’t be sure.”

At the same time, the line-of-sight nature of bar codes can be problematic when trying to determine with 100% accuracy that the products packed inside a case are the correct ones. “There’s a lot of discussion both at the state and federal level between industry and regulators around what happens when what you think is inside the case is not in the case,” says Celeste. “That was not an issue with RFID because you pack the case and then read the items in the case. But with 2D bar codes, you need to read the items as they enter the case, and sometimes that creates challenges, especially with round bottles in orienting them quickly enough to read the bar code and then pack it into the case.”

Additionally, to satisfy e-pedigree requirements, sealed cases would have to be opened downstream to verify the contents using a bar-code reader. As Celeste points out, this could be problematic because every case would have to be opened in order to inspect every bottle inside. To address this issue, the California Board of Pharmacy is involved in discussions with industry regarding “inference,” which the law does not currently permit in place of item-level tracking or validation of e-pedigree data.

Celeste explains inference using the following example: “If we look at a sealed manufacturer’s case, and the manufacturer says these 12 bottles are in there, instead of opening the case we trust the manufacturer enough, based on visual inspection of the case or a prior working relationship with that manufacturer, to infer that those items are indeed in that case.” According to Celeste, inference raises concerns that industry will need to address: “What happens if we open a case of 12 and there are 11 items in there, or 13?” he says. “How do we deal with either the one that’s missing or that 13th one, based on the fact that we’ve inferred there were 12? Those are issues we need to work out.”

INTRODUCING! The Latest Trends for Life Sciences at PACK EXPO Southeast
The exciting new PACK EXPO Southeast 2025 unites all vertical markets in one dynamic hub, generating more innovative answers to packaging challenges for life sciences products. Don’t miss this extraordinary opportunity for your business!
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INTRODUCING! The Latest Trends for Life Sciences at PACK EXPO Southeast