Combating Counterfeit Drugs in the U.S. Pharmaceutical Supply Chain: The Potential of Blockchain and IoT for Public Health Safety

Counterfeit drugs pose a significant public health threat in the U.S., undermining patient safety, causing economic losses, and complicating regulatory efforts. Despite existing measures like the Drug Supply Chain Security Act (DSCSA), the pharmaceutical supply chain remains vulnerable to fraudulent activities due to fragmented data and a lack of real-time tracking. This paper explores the potential of blockchain and Internet of Things (IoT) technologies to strengthen the pharmaceutical supply chain and mitigate the risks posed by counterfeit drugs. Blockchain offers an immutable, decentralized ledger that ensures the traceability and authenticity of pharmaceuticals, while IoT enables real-time monitoring of conditions such as temperature and humidity throughout the distribution process. Together, these technologies create a transparent, secure system that improves supply chain visibility and reduces the likelihood of counterfeit products entering the market. However, implementing these technologies faces challenges, including technical scalability, regulatory alignment, and cost barriers. Policy recommendations and industry collaboration strategies must address these challenges and enable widespread adoption. Future research should optimize blockchain-IoT integration, enhance sensor capabilities, and develop global standards to ensure interoperability. By leveraging blockchain and IoT, the pharmaceutical industry can enhance drug safety, improve compliance, and ensure a more robust supply chain against counterfeiting.