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  • Strategy for the Implementation of the Modern Digital Track-And-Trace System in Pharmaceutical Circulation

  • Department of Pharmaceutical Technology and Management, Azerbaijan Medical University, Baku, Azerbaijan

Abstract

This article examines the scientific-theoretical and practical aspects of implementing a modern digital Track & Trace system in the circulation of pharmaceutical products. This study was conducted at public legal entity “Analytical Expertise Center” of the Ministry of Health of Azerbaijan Republic, and aimed to evaluate the implementation of digital tracking mechanisms in the circulation of pharmaceutical products. Tracking models developed within the regulatory frameworks of the European Union’s Falsified Medicines Directive (FMD) and the United States Drug Supply Chain Security Act (DSCSA) are analyzed, and the possibilities for their adaptation to national conditions are assessed. Based on the conducted analysis, a strategic model involving phased implementation is proposed for the national context. The model identifies the marking of pharmaceutical products with unique identification codes, real-time data exchange across the supply chain, and the execution of state regulatory control through a unified digital platform as key mechanisms.The proposed strategy contributes to preventing the circulation of falsified and substandard pharmaceutical products, optimizing regulatory control processes, and enhancing the overall safety of pharmaceutical circulation

Keywords

pharmaceutical products, digital tracking, track & trace, quality, safety, digitalization.

Introduction

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The circulation of pharmaceutical products represents one of the most sensitive and high-risk areas of the healthcare system. Fragmented and non-integrated control mechanisms across the stages from production to the final consumer significantly increase the risk of falsified and substandard pharmaceutical products entering the supply chain. Existing regulatory mechanisms are largely based on retrospective inspections, which limits the ability to ensure real-time transparency throughout the circulation process. Therefore, a scientifically grounded investigation of this issue is both relevant and necessary. This article analyzes the limitations of existing regulatory control mechanisms, evaluates the core features of international Track & Trace models, and identifies implementation approaches suitable for national conditions based on the findings. The objective of the study is to develop a scientifically substantiated national strategy for implementing a modern digital tracking system in the circulation of pharmaceutical products. In recent years, the implementation of modern digital Track & Trace systems has become a strategic priority in developed countries to address these challenges. Within the European Union, the Falsified Medicines Directive (FMD), and in the United States, the Drug Supply Chain Security Act (DSCSA), continuous tracking of pharmaceutical products based on unique identification has been established as a legal requirement. These systems enable the digital recording of the movement of each pharmaceutical package throughout the supply chain and facilitate timely and effective regulatory oversight. Direct replication of international practices at the national level often does not yield effective results. Legal frameworks, institutional structures, technological infrastructure, and the preparedness of market participants play a decisive role in the successful implementation of digital tracking systems. Consequently, the implementation of a Track & Trace system should be regarded not merely as a technological solution but as a comprehensive legal, institutional, and strategic approach.

MATERIALS AND METHODS

The material base of the study consists of national and international scientific publications related to digital tracking systems in pharmaceutical circulation, official documents of international organizations (WHO, European Commission, FDA), regulatory acts related to the EU Falsified Medicines Directive (FMD) and the U.S. Drug Supply Chain Security Act (DSCSA), as well as national legal acts regulating pharmaceutical circulation. In addition, analytical reports and open statistical data sources were utilized.

The study employed a systematic approach, enabling the pharmaceutical supply chain to be examined as an integrated system and allowing functional interconnections between its stages to be identified. A comparative analysis method was applied to assess existing regulatory mechanisms and digital tracking models, comparing the legal, institutional, and technological features of international Track & Trace systems with national practices. Furthermore, a regulatory and legal analysis was conducted to evaluate mandatory requirements, legal mechanisms, and institutional competencies governing the implementation of digital tracking systems. Content analysis was used to systematize the objectives, implementation mechanisms, and outcomes of digital tracking systems described in scientific literature and official documents. A structural-functional analysis identified the roles of key stakeholders involved in pharmaceutical circulation (manufacturers, importers, distributors, pharmacies, and regulatory authorities) and their functional interactions within the digital tracking system. Based on the obtained results, analytical generalizations were made and a phased strategic implementation model suitable for national application was conceptually formulated.

RESULTS AND DISCUSSION

For the first time at the national level, the necessity and strategic importance of implementing a modern digital Track & Trace system in pharmaceutical circulation have been scientifically substantiated. Continuous tracking of pharmaceutical products based on unique identification ensures transparency throughout the circulation process, facilitates the detection of falsified and substandard pharmaceutical products, and enhances the effectiveness of regulatory control. Analysis of international experience indicates that successful implementation of digital tracking systems extends beyond technological solutions and is directly linked to the clarity of the legal-institutional framework, data integration, and phased implementation mechanisms. The national implementation strategy proposed in this article strengthens existing control mechanisms and contributes to reducing risks in pharmaceutical circulation. The findings hold significant practical value in accelerating digital transformation within the pharmaceutical sector, improving drug safety, and optimizing regulatory processes. They may be widely applied in shaping future regulatory, legal, and institutional decisions. The findings of the study demonstrate that the implementation of a modern digital Track & Trace system is one of the most effective tools for enhancing regulatory control over pharmaceutical circulation. Analysis of international models confirms that continuous tracking of pharmaceutical products based on unique identification significantly reduces the risk of falsified and substandard pharmaceutical products entering the supply chain and improves the operational efficiency of state regulatory oversight. Comparative analysis shows that the effectiveness of digital tracking systems depends not only on technological solutions but also on the clarity of legal regulation, institutional coordination, and the readiness of market participants. In the national context, fragmented control mechanisms and limited data integration represent key implementation challenges The study revealed that the proposed phased implementation strategy preserves the core principles of international Track & Trace models while adapting them to national legal and institutional characteristics. The strategy emphasizes gradual implementation, the development of risk-based regulatory control mechanisms, and the strengthening of public–private sector cooperation. The proposed approach offers tangible opportunities to increase transparency in pharmaceutical circulation, optimize regulatory costs, and enhance drug safety. However, effective implementation requires continuous improvement of the regulatory framework and the phased development of technological infrastructure as essential prerequisites.

 

Table. Key Indicators for Assessing the Effectiveness of a Digital Track & Trace System

Indicator Group

Indicator Name

Unit of Measurement

Analytical Significance

Traceability Level

Share of pharmaceutical products registered with unique identification

%

Indicates system coverage of pharmaceutical circulation

Control Effectiveness

Frequency of detection of falsified and substandard pharmaceutical products

Cases/month

Assesses the risk of substandard pharmaceutical product entry

Operational Efficiency

Duration of regulatory control actions

Days / hours

Measures responsiveness of regulatory oversight

Data

Data completeness and compliance rate

%

Characterizes reliability of transmitted data

Risk-Based Control

Identification of high-risk pharmaceutical products

Number/period

Reflects effectiveness of risk-based approaches

Resource Efficiency

Reduction in regulatory control costs

% / monetary unit

Evaluates economic impact of digitalization

 

CONCLUSION

This study demonstrates that the implementation of a modern digital Track & Trace system is a critical factor in strengthening regulatory control, enhancing transparency, and improving safety in the circulation of pharmaceutical products, as continuous tracking based on unique identification significantly reduces the risks of falsified and substandard pharmaceutical while enabling effective oversight across the supply chain. The findings further confirm that the success of digital tracking systems depends not only on technological solutions but also on coherent legal frameworks, effective institutional coordination, and phased implementation adapted to national conditions, with the proposed strategy providing a scientifically grounded basis for improving pharmaceutical governance and supporting sustainable digital transformation in the pharmaceutical sector.

ACKNOWLEDGEMENT

The authors would like to express sincere appreciation to all experts and professionals in the fields of pharmaceutical regulation, digital health, and supply chain management who contributed their insights to the development of this manuscript. Special thanks are extended to colleagues and academic reviewers for their valuable feedback and constructive comments, which significantly improved the quality and clarity of this work. The authors also acknowledge the support of institutional partners and stakeholders involved in pharmaceutical circulation and digital transformation initiatives.

The views and conclusions expressed in this manuscript are those of the authors and do not necessarily reflect the official position of any affiliated organization.

REFERENCES

  1. World Health Organization. WHO global surveillance and monitoring system for substandard and falsified medical products. Geneva: WHO; 2017.
  2. World Health Organization. A study on the public health and socioeconomic impact of substandard and falsified medical products. Geneva: WHO; 2017.
  3. International Coalition of Medicines Regulatory Authorities (ICMRA). Recommendations on track and trace systems for medicinal products. Geneva: ICMRA; 2020.
  4. European Parliament and Council of the European Union. Directive 2011/62/EU amending Directive 2001/83/EC on the prevention of the entry into the legal supply chain of falsified medicinal products. Off J Eur Union. 2011; L174:74–87.
  5. European Commission. Commission Delegated Regulation (EU) 2016/161 supplementing Directive 2001/83/EC by laying down detailed rules for safety features appearing on the packaging of medicinal products for human use. Off J Eur Union. 2016; L32:1–27.
  6. U.S. Congress. Drug Supply Chain Security Act (DSCSA). Public Law No. 113-54. 2013.
  7. GS1. GS1 General Specifications. Release 23.0. Brussels: GS1; 2023.
  8. GS1. GS1 DataMatrix guideline. Brussels: GS1; 2022.
  9. International Organization for Standardization. ISO/IEC 16022: Information technology — Automatic identification and data capture techniques — Data Matrix bar code symbology specification. Geneva: ISO; 2006.
  10. International Organization for Standardization. ISO 9001: Quality management systems — Requirements. Geneva: ISO; 2015.
  11. International Council for Harmonisation of Technical Requirements for Pharmaceuticals for Human Use (ICH). ICH Q9 (R1): Quality Risk Management. Geneva: ICH; 2023.
  12. European Medicines Agency. Implementation of safety features under the Falsified Medicines Directive. Amsterdam: EMA; 2019.
  13. Kshetri N. Blockchain and pharmaceutical supply chain management. IEEE IT Prof. 2018;20(4):15–21.
  14. Mackey TK, Nayyar G. Digital technologies to combat counterfeit medicines: blockchain, AI and track-and-trace systems. BMJ Glob Health. 2017;2(4):e000305.
  15. Kouhizadeh M, Sarkis J. Blockchain practices, potentials, and perspectives in greening supply chains. Sustainability. 2018;10(10):3652.
  16. Roehrich JK, Grosvold J, Hoejmose SU. Reputational risks and sustainable supply chain management: decision making under bounded rationality. Int J Oper Prod Manag. 2014;34(5):695–719.
  17. Boehm E, Pizzolato M, Rinaldi M. Pharmaceutical serialization and aggregation: global regulatory trends and implementation challenges. J Pharm Policy Pract. 2020; 13:45.
  18. World Health Organization. Guidelines on the implementation of track and trace systems for medical products. Geneva: WHO; 2021.
  19. OECD. Trade in counterfeit pharmaceutical products. Paris: OECD Publishing; 2020.
  20. Deloitte. Digital transformation in life sciences: track-and-trace and beyond. London: Deloitte Insights; 2022.

Reference

  1. World Health Organization. WHO global surveillance and monitoring system for substandard and falsified medical products. Geneva: WHO; 2017.
  2. World Health Organization. A study on the public health and socioeconomic impact of substandard and falsified medical products. Geneva: WHO; 2017.
  3. International Coalition of Medicines Regulatory Authorities (ICMRA). Recommendations on track and trace systems for medicinal products. Geneva: ICMRA; 2020.
  4. European Parliament and Council of the European Union. Directive 2011/62/EU amending Directive 2001/83/EC on the prevention of the entry into the legal supply chain of falsified medicinal products. Off J Eur Union. 2011; L174:74–87.
  5. European Commission. Commission Delegated Regulation (EU) 2016/161 supplementing Directive 2001/83/EC by laying down detailed rules for safety features appearing on the packaging of medicinal products for human use. Off J Eur Union. 2016; L32:1–27.
  6. U.S. Congress. Drug Supply Chain Security Act (DSCSA). Public Law No. 113-54. 2013.
  7. GS1. GS1 General Specifications. Release 23.0. Brussels: GS1; 2023.
  8. GS1. GS1 DataMatrix guideline. Brussels: GS1; 2022.
  9. International Organization for Standardization. ISO/IEC 16022: Information technology — Automatic identification and data capture techniques — Data Matrix bar code symbology specification. Geneva: ISO; 2006.
  10. International Organization for Standardization. ISO 9001: Quality management systems — Requirements. Geneva: ISO; 2015.
  11. International Council for Harmonisation of Technical Requirements for Pharmaceuticals for Human Use (ICH). ICH Q9 (R1): Quality Risk Management. Geneva: ICH; 2023.
  12. European Medicines Agency. Implementation of safety features under the Falsified Medicines Directive. Amsterdam: EMA; 2019.
  13. Kshetri N. Blockchain and pharmaceutical supply chain management. IEEE IT Prof. 2018;20(4):15–21.
  14. Mackey TK, Nayyar G. Digital technologies to combat counterfeit medicines: blockchain, AI and track-and-trace systems. BMJ Glob Health. 2017;2(4):e000305.
  15. Kouhizadeh M, Sarkis J. Blockchain practices, potentials, and perspectives in greening supply chains. Sustainability. 2018;10(10):3652.
  16. Roehrich JK, Grosvold J, Hoejmose SU. Reputational risks and sustainable supply chain management: decision making under bounded rationality. Int J Oper Prod Manag. 2014;34(5):695–719.
  17. Boehm E, Pizzolato M, Rinaldi M. Pharmaceutical serialization and aggregation: global regulatory trends and implementation challenges. J Pharm Policy Pract. 2020; 13:45.
  18. World Health Organization. Guidelines on the implementation of track and trace systems for medical products. Geneva: WHO; 2021.
  19. OECD. Trade in counterfeit pharmaceutical products. Paris: OECD Publishing; 2020.
  20. Deloitte. Digital transformation in life sciences: track-and-trace and beyond. London: Deloitte Insights; 2022.

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Said Farzullayev
Corresponding author

Department of Pharmaceutical Technology and Management, Azerbaijan Medical University

Photo
Mahbuba Valiyeva
Co-author

Department of Pharmaceutical Technology and Management, Azerbaijan Medical University

Said Y. Farzullayev, Mahbuba N. Valiyeva, Strategy for the Implementation of The Modern Digital Track-And-Trace System in Pharmaceutical Circulation, Int. J. of Pharm. Sci., 2026, Vol 4, Issue 3, 239-243. https://doi.org/10.5281/zenodo.18860060

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