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Radio Frequency Identification (Rfid) in Pharmaceuticals

Supply Chain Security Concerns Provide Impetus for Rfid Adoption

Publication Date February 2010
Publisher GBI Research
Product Type Report
Pages 89
ISBN Number not applicable
Product Code GBI00018

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£2,310.00
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Summary

GBI Research, the leading business intelligence provider, has released its latest research, "Radio Frequency Identification (RFID) in Pharmaceuticals - Supply Chain Security Concerns Provides Impetus for RFID Adoption." It provides key data and analysis of the major factors affecting the market for RFID in the pharmaceuticals industry. This pharmaceutical and healthcare report also analyzes the strengths, weaknesses, opportunities and threats in the RFID market within the pharmaceutical industry and the key market drivers and barriers to the adoption of RFID in the industry.

The report is based on proprietary databases, primary and secondary research, and in-house analysis by GBI Research's team of industry experts.

The global market for Radio Frequency Identification (RFID) products and services in the pharmaceutical industry was valued at $112m in 2008 and is expected to grow to $884m in 2015 at a CAGR of 34% over the same period. The market for RFID hardware is the largest at the initial stages of adoption in the pharmaceutical industry. Service providers are gaining market share by integrating their services with one-stop solutions. The share of hardware in the RFID market is estimated to be 60% in 2008 and includes tags, readers and label printers. The share of software and services in the RFID market is estimated to be 40% in 2008. RFID services include installation, integration, training, maintenance and IT support.

GBI Research's analysis suggests that the RFID technology is in the early stages of adoption within the pharmaceutical industry. The market for RFID in pharmaceuticals is hampered by low adoption rates due to apprehensions over high investments and the lack of a clear business case. However, solutions for the pharmaceutical industry are evolving to address the concerns responsible for the slow growth. RFID vendors are offering pilot kits for the pharmaceutical industry to test and evaluate RFID technology so that clients can understand the technology's costs and benefits. RFID adoption rate will be low initially due to budget restrictions in the pharmaceutical industry as a result of the global recession and subsequent cost cutting measures. However, the adoption rate is expected to increase rapidly due to mandates from retailers like Wal-Mart and from regulatory authorities like the California Board of Pharmacy for the implementation of e-Pedigree in the supply chain. In essence, RFID is the most promising solution for the elimination of counterfeits in the pharmaceutical supply chain. However, realization of the technology's potential benefits is possible only if apprehensions about the initial costs of implementation, return-on-investment and a weak business case are addressed.

Scope

The scope of this report includes:

  • Analysis of the opportunities and challenges for Radio Frequency Identification technology providers in the pharmaceuticals industry
  • Market revenues and forecasts for RFID solutions in the global pharmaceutical industry from 2008 to 2015
  • The market for RFID hardware, software and services in the pharmaceutical industry including track-and-trace solutions and e-Pedigree solutions
  • Qualitative analysis of the market drivers, barriers, future outlook and challenges for RFID adoption in the pharmaceutical industry
  • Coverage of key geographies including the US, Germany, the UK, France, Spain, Italy and Japan
  • Analysis of technology adoption framework for RFID hardware, software and services in the pharmaceutical industry
  • Information and analysis on the competitive landscape and the leading market players such as Alien Technologies, SupplyScape, Zebra Technologies Corporation, TAGSYS Inc and IBM

Reasons to buy

The report will enhance your decision making and will enable you to:

  • Formulate strategies to increase your company's growth by understanding the new growth opportunities for RFID technologies within the pharmaceutical market
  • Draft efficient strategies by understanding best practices, identifying key winners and losers and who is best positioned to take advantage of the emerging market opportunities
  • Overcome regulatory and technology hurdles by identifying the key trends shaping and driving the RFID markets in pharmaceutical industry
  • Make more informed business decisions from the insightful and in-depth analysis of the market for RFID in pharmaceuticals and the factors shaping its adoption
  • Differentiate yourself from competitors and develop new solutions for the pharmaceutical industry by understanding the current competitive landscape and how it is evolving to meet the needs of the pharmaceutical industry

Contents

  • 1 Table of Contents
  • 1 Table of Contents
    • 1.1 List of Tables
    • 1.2 List of Figures
  • 2 Introduction
    • 2.1 GBI Research Report Guidance
  • 3 Radio Frequency Identification (RFID) in Pharmaceuticals - Overview of the Pharmaceutical Supply Chain
    • 3.1 Overview of the Pharmaceutical Supply Chain
    • 3.2 Pharmaceutical Supply Chain Models
      • 3.2.1 Traditional Wholesaler Model
      • 3.2.2 Limited Distribution Model
      • 3.2.3 Direct Distribution Model
  • 4 Radio Frequency Identification (RFID) in Pharmaceuticals - Overview of RFID Technology
    • 4.1 RFID Applications in the Supply Chain
    • 4.2 RFID Tags
      • 4.2.1 Introduction
    • 4.3 RFID Readers
    • 4.4 RFID Infrastructure
  • 5 Radio Frequency Identification (RFID) in Pharmaceuticals - Unmet Needs in the Pharmaceutical Industry
    • 5.1 Counterfeit Problems Due to Unauthorized Secondary Wholesalers
    • 5.2 Counterfeit Issues in Parallel Trade
    • 5.3 Counterfeit Problems Due to Product Shortages
    • 5.4 Counterfeit Problems Due to Repackaging
    • 5.5 Counterfeit Introduction in Drug Re-Importation
    • 5.6 Markets for Counterfeit Drugs
      • 5.6.1 Costs to the Pharmaceutical Industry due to Counterfeiting
      • 5.6.2 High Costs Due to Drug Callbacks
      • 5.6.3 Operational Inefficiency and Costs in Inventory Management
      • 5.6.4 Inaccurate Transactions in Chargeback Management
      • 5.6.5 Increasing Cost and High Percentage of Errors in Clinical Trials
  • 6 Radio Frequency Identification (RFID) in Pharmaceuticals - RFID as a Solution for the Pharmaceutical Industry
    • 6.1 Solutions for the Pharmaceutical Industry
      • 6.1.1 E-Pedigree Solutions
      • 6.1.2 Track and Trace Solutions
      • 6.1.3 Product Callback Management
      • 6.1.4 Authentication of Drugs in the Supply Chain
      • 6.1.5 Inventory Management
      • 6.1.6 Sample Distribution Management
      • 6.1.7 Clinical Trial Solutions
    • 6.2 Costs of RFID Solutions
    • 6.3 Considerations for RFID Implementation
      • 6.3.1 Parent-Child Relationship for Choice between HF and UHF Frequencies
      • 6.3.2 Pilot Phase Execution
    • 6.4 Pharmaceutical Industry's Priorities for RFID Implementation
      • 6.4.1 Retailer Mandates for RFID implementation Pushes Pharmaceutical Manufacturers to Adopt RFID Technology
    • 6.5 Considerations for Total Enterprise Management
    • 6.6 Business Process Reengineering for RFID Implementation
      • 6.6.1 Reengineering Packaging Processes
      • 6.6.2 Reengineering Tag Placements
      • 6.6.3 Slap-and-Ship Applications May Suit Smaller Enterprises
      • 6.6.4 Reengineering Site Processes
    • 6.7 RFID Implementation and Maximization of Benefit
  • 7 Radio Frequency Identification (RFID) in the Pharmaceuticals - Market Characterization
    • 7.1 Market Forecasts for RFID in Pharmaceuticals
    • 7.2 Technology Adoption Framework for RFID Solutions
    • 7.3 Drivers for the Adoption of RFID Solutions
      • 7.3.1 Increasing Counterfeit Incidents Accentuate the Urgent Need for RFID Implementation
      • 7.3.2 Mandates by Drug Retailers and Pharmacies Increases Adoption of RFID systems by Pharmaceutical Manufacturers
      • 7.3.3 Harmonization of UHF Standards and the Elimination of Listen before Talk Protocol in Europe is Likely to Spur Growth
      • 7.3.4 Pedigree Requirements in the Pharmaceutical Industry will Accelerate RFID Implementation
    • 7.4 Barriers for the Adoption of RFID Solutions
      • 7.4.1 High Cost of Implementation Raises Concerns over Return on Investment
      • 7.4.2 Management of Overload in Data Due to Large Scale RFID Implementation is a Challenge
      • 7.4.3 High Costs and Time Consumption of Mass Serialization Deters Adoption
    • 7.5 SWOT Analysis
  • 8 Radio Frequency Identification (RFID) in the Pharmaceuticals - Competitive Landscape
    • 8.1 Value Chain in the RFID Industry
      • 8.1.1 Automated Packaging and Tagging Solution Providers
      • 8.1.2 Software Solutions Providers
      • 8.1.3 Providers of Pilot Kits
      • 8.1.4 One-Stop Solution Providers
    • 8.2 Pharmaceutical Industry's Priorities Shape the Growth of RFID Markets
    • 8.3 RFID Systems Compete with Cheaper Barcode Systems
  • 9 Radio Frequency Identification (RFID) in the Pharmaceuticals - Regulatory Landscape
    • 9.1 Regulations in the US Encourage RFID Adoption in the Pharmaceutical Industry
      • 9.1.1 The Prescription Drug Marketing Act of 1987 (PDMA)
      • 9.1.2 California Pedigree Legislation's Deadline has been Postponed on Multiple Occasions Due to the Challenges Faced in RFID Implementation
    • 9.2 Regulations in Europe are not yet Favorable for Rapid RFID Adoption
      • 9.2.1 Code Structures for Unique Identification Differ across European Countries
      • 9.2.2 Harmonization of Regulations for UHF in Europe is Expected to Increase Adoption
  • 10 Radio Frequency Identification (RFID) in Pharmaceuticals - Case Studies
    • 10.1 Case Study: RFID implementation in Direct-to-Pharmacy Distribution Channel
    • 10.2 Pfizer
      • 10.2.1 Challenge
      • 10.2.2 Solution
    • 10.3 GlaxoSmithKline
      • 10.3.1 Challenge
      • 10.3.2 Solution
    • 10.4 Purdue Pharma
      • 10.4.1 Challenge
      • 10.4.2 Solution
  • 11 Radio Frequency Identification (RFID) in the Pharmaceutical Industry - Company Profiles
    • 11.1 Alien Technology
    • 11.2 Avery Dennison
    • 11.3 Blue Vector
    • 11.4 Hewlett-Packard
    • 11.5 International Business Machines (IBM) Corporation
    • 11.6 Intermec, Inc
    • 11.7 Motorola, Inc
    • 11.8 Siemens
    • 11.9 SupplyScape
    • 11.10 SureID
    • 11.11 TAGSYS Inc
    • 11.12 Texas Instruments
    • 11.13 Toshiba Tec
    • 11.14 UPM Raflatac
    • 11.15 VeriSign
    • 11.16 Zebra Technologies Corporation
  • 12 Appendix
    • 12.1 Market Definitions
    • 12.2 Abbreviations
    • 12.3 Research Methodology
      • 12.3.1 Coverage
      • 12.3.2 Secondary Research
      • 12.3.3 Primary Research
      • 12.3.4 Expert Panel Validation
    • 12.4 Contact Us
    • 12.5 Disclaimer
  • 1.1 List of Tables
    • Table 1: RFID in Pharmaceuticals, Share of Parallel Imports in Pharmacy Sales (%), 2007
    • Table 2: RFID in Pharmaceuticals, Number of Counterfeiting Cases Opened by the US FDA, 1997-2006
    • Table 3: RFID in Pharmaceuticals, Number of Counterfeit Cases Reported in Europe, 2006-2008
    • Table 4: RFID in Pharmaceuticals, Number of Counterfeit Medicines Seized in Europe, 2006-2008
    • Table 5: RFID in Pharmaceuticals, Share of Counterfeit Drugs Seized in Europe by Country of Origin, 2006-2008
    • Table 6: RFID in Pharmaceuticals, Number of Drug Callbacks in the US, 1997-2007
    • Table 7: RFID in Pharmaceuticals, Global, Revenues ($m), 2008-2015
    • Table 8: RFID in Pharmaceuticals, Alien Technology, 2010
    • Table 9: RFID in Pharmaceuticals, Avery Dennison, 2010
    • Table 10: RFID in Pharmaceuticals, Blue Vector, 2010
    • Table 11: RFID in Pharmaceuticals, Hewlett-Packard, 2010
    • Table 12: RFID in Pharmaceuticals, International Business Machines (IBM) Corporation, 2010
    • Table 13: RFID in Pharmaceuticals, Intermec, Inc, 2010
    • Table 14: RFID in Pharmaceuticals, Motorola, Inc, 2010
    • Table 15: RFID in Pharmaceuticals, Siemens, 2010
    • Table 16: RFID in Pharmaceuticals, SupplyScape, 2010
    • Table 17: RFID in Pharmaceuticals, SureID, 2010
    • Table 18: RFID in Pharmaceuticals, TAGSYS, Inc, 2010
    • Table 19: RFID in Pharmaceuticals, Texas Instruments, 2010
    • Table 20: RFID in Pharmaceuticals, Toshiba TEC, 2010
    • Table 21: RFID in Pharmaceuticals, UPM Raflatac, 2010
    • Table 22: RFID in Pharmaceuticals, VeriSign, 2010
    • Table 23: RFID in Pharmaceuticals, Zebra Technologies Corporation, 2010
  • 1.2 List of Figures
    • Figure 1: RFID in Pharmaceuticals, Structure of a Traditional Distribution Channel
    • Figure 2: RFID in Pharmaceuticals, Structure of a Limited Distribution Channel
    • Figure 3: RFID in Pharmaceuticals, Structure of a Direct-to-Pharmacy Distribution Channel
    • Figure 4: RFID in Pharmaceuticals, Components of an RFID System
    • Figure 5: RFID in Pharmaceuticals, Classification of RFID Tags
    • Figure 6: RFID in Pharmaceuticals, Comparison of Passive and Active Tags
    • Figure 7: RFID in Pharmaceuticals, Comparison of Radio Wave Frequencies
    • Figure 8: RFID in Pharmaceuticals, Communication in an RFID Infrastructure
    • Figure 9: RFID in Pharmaceuticals, Counterfeit Intrusion in Parallel Trade
    • Figure 10: RFID in Pharmaceuticals, Share of Parallel Imports in Pharmacy Sales (%), 2007
    • Figure 11: RFID in Pharmaceuticals, Counterfeit Intrusion Due to Product Shortage
    • Figure 12: RFID in Pharmaceuticals, Counterfeit Intrusion Due to Repackaging
    • Figure 13: RFID in Pharmaceuticals, Number of Counterfeiting Cases Opened by the US FDA, 1997-2006
    • Figure 14: RFID in Pharmaceuticals, Number of Counterfeit Cases Reported in Europe, 2006-2008
    • Figure 15: RFID in Pharmaceuticals, Number of Counterfeit Medicines Seized in Europe, 2005-2008
    • Figure 16: RFID in Pharmaceuticals, Share of Counterfeit Drugs Seized in Europe by Country of Origin, 2006-2008
    • Figure 17: RFID in Pharmaceuticals, Share of Counterfeits in Pharmaceutical Markets, 2008
    • Figure 18: RFID in Pharmaceuticals, Impact of Counterfeit Zyprexa on Eli Lilly's Share Prices, Oct 2001 - Jul 2004
    • Figure 19: RFID in Pharmaceuticals, Impact of Combivir Counterfeiting on GlaxoSmithKline's Share Prices, May 2001- May 2004
    • Figure 20: RFID in Pharmaceuticals, Number of Drug Callbacks in the US, 1997-2007
    • Figure 21: RFID in Pharmaceuticals, Impact of Vioxx Withdrawal on Merck's Share Prices, Apr 2003- Oct 2006
    • Figure 22: RFID in Pharmaceuticals, e-Pedigree in a Pharmaceutical Supply Chain
    • Figure 23: RFID in Pharmaceuticals, Paper Based Pedigree in a Pharmaceutical Supply Chain
    • Figure 24: RFID in Pharmaceuticals, Information Flow in Track-and-Trace Applications
    • Figure 25: RFID in Pharmaceuticals, Costs of Implementation in Distribution Channels, 2008
    • Figure 26: RFID in Pharmaceuticals, Considerations for RFID Implementation, 2010
    • Figure 27: RFID in Pharmaceuticals, Attractiveness Matrix for RFID, 2008
    • Figure 28: RFID in Pharmaceuticals, Considerations for Total Enterprise Management, 2010
    • Figure 29: RFID in Pharmaceuticals, Maximization of Benefits Through RFID Implementation, 2010
    • Figure 30: RFID in Pharmaceuticals, Benefits Due to RFID in the Pharmaceutical Supply Chain, 2010
    • Figure 31: RFID in Pharmaceuticals, Supply Chain Maturity Due to RFID Adoption, 2010
    • Figure 32: RFID in Pharmaceuticals, Global, Revenue Forecasts ($m), 2008- 2015
    • Figure 33: RFID in Pharmaceuticals, Demand for Hardware and Services in the Early Stage of Adoption, 2008
    • Figure 34: RFID in Pharmaceuticals, Technology Adoption Framework for RFID Technology, 2008
    • Figure 35: RFID in Pharmaceuticals, Drivers and Barriers for the RFID Market, 2008-2015
    • Figure 36: RFID in Pharmaceuticals, Impact Analysis for RFID Adoption, 2008
    • Figure 37: RFID in Pharmaceuticals, SWOT Analysis, 2008
    • Figure 38: RFID in Pharmaceuticals, Value Chain in the RFID Industry, 2010
    • Figure 39: RFID in Pharmaceuticals, RFID Solutions Mapping to Implementation Challenges, 2010
    • Figure 40: RFID in Pharmaceuticals, Example of One-Stop Solution - California Express Solution, 2010
    • Figure 41: RFID in Pharmaceuticals, Priority of Solutions for Implementation in the Pharmaceutical Industry, 2008
    • Figure 42: RFID in Pharmaceuticals, Comparison of RFID and 2D Barcode Systems, 2010
    • Figure 43: RFID in Pharmaceuticals, Information Requirements on Pedigree, 2008
    • Figure 44: RFID in Pharmaceuticals, Advantage of e-Pedigree in a Direct-to-Pharmacy Distribution, 2010
    • Figure 45: GBI Research Methodology