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When a user googles ‘counterfeit drugs’, India is one of the first market that comes up. Counterfeit drugs cause the greatest economic loss for India. The World Health Organization (WHO) estimates that one in five drugs made in India are fake and that fake pharmaceuticals are a $75 billion dollar global industry.

counterfeit drugs

However, Blockchain – a decentralized, scalable and tamper proof solution – can help disable this.


Sophisticated counterfeiter has means of duplicating product, packaging, coding, and pedigree.

In a serialized world, strength is derived from the use of centralized databases. This central database, used to comply with regulations, is a target for counterfeiters who can then inject counterfeit medicines into legitimate supply chains. Eg, a counterfeiter making fake products, can simply hack into central databases, create false records and then offer it up for sale. As the product moves up in the supply chain, it simply adds legitimacy to the fake database record. Can we detect it?

Another evolving trend is theft – counterfeiters steal the product and sell it back into legitimate channels or divert them to black markets. If a consignment of medicines is stolen, major hurdle for counterfeiters is the database. Once the manufacturer has updated the database of serialized product with status of “stolen”, counterfeiters just need to hack into that database and change the record back to “legitimate”. Can a crime like this be detected?


Every manufactured product can be treated as an asset and can be added to the blockchain using a hash. These hashes will verify the legitimacy of the product. Every time a product moves up into the supply chain (from one trading partner to another), the change of ownership will be recorded in the blockchain, which can provide absolute verification and complete audit trail. Moreover, the blockchain prevents malicious individuals from creating duplicate/fake records.




Verified Supply Chain


Instantaneous Audit of Product History


Impregnable Database


Low Cost


Sate Development