Innovation and upgradation have always been a key to success for any industry. Considering life sciences and healthcare industry, where innovation may be a matter of time, upgradation is always a tool in hand to progress.

Most of the companies have already started to focus on its product and process upgradation aspects. However, one major thing that most of them have neglected so far is DATA. A life science or healthcare company generates and work with huge data every day (for example: clinical trials, patient safety, drug supply chain, inventory management, recall management etc.). Most of the data generated in the course of the business is personal data or any kind of information that can identify an individual or be used to do so.

Data Protection Laws

Handling this data generated and its usage as per legal norms is very important and may be cumbersome as well. Today, governments are trying to regulate personal data and its use via strict regulations.  GDPR – General Data Protection Regulation, an EU Regulation is the new buzz word. It mandates the way a company can collect and process personal data of its citizen irrespective of the location of the company or organization. Most of the developed and developing countries in the world already have a data protection law in place or are on the verge of implementing a law soon. In such circumstances, it becomes very crucial for a healthcare company on how it collects data and legally process it for its own use.

Blockchain Technology

The implications of non-compliance with data protection regulations are generally high in terms of monetary penalties or may even lead to punitive damages. A company can neither default, nor can it avoid collecting and processing data which is the backbone of its functioning. Thus, to have a better data management in accordance with legal compliance, adopting blockchain technology may be the solution going forward. Blockchain technology will be helpful for the industry to handle the problems it is facing currently with respect to data fragmentation, inconsistency, cyber security and interoperability. It has shown great potential in managing privacy, security, interoperability of health data.

US has already understood that healthcare industry may reap tremendous benefit from block chain technology. To give it a legal pathway a law has already been drafted – Drug Supply Chain Security Act; which outlines the steps for the pharmaceutical industry to build an electronic, interoperable system to identify and trace prescription drugs. A company can now track the location of its product on a real time basis. This regulation will empower the life science industry to manage its huge data without violating data protection regulations.

The application of blockchain technology by life science and healthcare industry may be a game changer. In adherence to the applicable laws, tracking will also ensure a faster supply of drugs in emergency situations or outbreaks; there will be a reduction in counterfeit, stolen, contaminated products; it will eliminate the need to stock extra which may even expire if not sold; reduce the inventory costs involved at each level.

Early application of the technology in accordance to legal principles will surely ensure better health care management worldwide.