How Pharma Authentication Tech Enhances ROI and Safety

In an exclusive interview with Thiruamuthan, Assistant Editor at India Pharma Outlook, Ankit Gupta, President of ASPA, discusses how serialization and digital authentication are driving a paradigm shift in the pharmaceutical industry. He highlights that companies are increasingly adopting these technologies to combat counterfeiting, enhance supply chain transparency, and recover revenue lost to fake products. The approach integrates physical security elements such as holograms with digital tools like QR codes and blockchain for end-to-end traceability. Driven by regulatory mandates and growing consumer awareness, brands now recognize these investments as strategic enablers of long-term value rather than operational expenses.  

With counterfeit drugs still affecting India’s pharmaceutical industry, how are companies adopting serialization and digital authentication technologies to ensure integrity and measurable ROI? 

In various industries, particularly within the pharmaceutical sector, companies are increasingly implementing serialization and digital authentication technologies to safeguard product integrity and achieve measurable returns on investment (ROI). From an industry standpoint, understanding how a product moves through the supply chain is no longer optional, it is essential to ensuring authenticity, safety, and regulatory compliance. 

At the core of combatting counterfeiting lie two essential components. First, there must be a physical security element applied directly to the product or its packaging, enabling consumer-level authentication. This includes technologies such as holography, variable data printing, security printing, and specialized inks. More advanced innovations like micro-optics and RFID are also being explored for broader implementation. These physical layers provide a first line of defense by enabling consumers, retailers, or auditors to verify the authenticity of a product at the point of sale or use. 

Second, there is a digital traceability layer that ensures complete visibility and transparency across the entire supply chain, from manufacturing through distribution to retail. Technologies like QR codes and RFID (in future applications) allow for real-time tracking of every SKU (stock-keeping unit). As products move through various stages of the supply chain, their data is captured and made accessible, ensuring full traceability, accountability, and tamper detection. 

From a financial and operational standpoint, the ROI of such anti-counterfeiting measures is compelling. For instance, consider a company with a 100 crore annual turnover facing a 20% counterfeit impact; this equates to a 20 crore loss in revenue. With a 10% profit margin, that translates into a direct 2 crore loss in profit. Transitioning from traditional packaging to smart, secure packaging solutions may cost between 10 lakh and 50 lakh. Even at the higher end of the investment, the return can be 400% or more, solely based on recovered profit, excluding the additional value of enhanced brand reputation and customer trust. 

Moreover, anti-counterfeiting solutions should be viewed as strategic investments, not as operational expenses. Beyond profit recovery, these solutions reflect a brand’s commitment to quality, consumer safety, and market credibility key pillars in maintaining and growing brand goodwill in competitive markets. 

The urgency for adoption is further underscored by recent incidents. In one case, counterfeit pharmaceutical products reportedly entered the supply chain, resulting in confusion at the retail level. A chemist or distributor allegedly ended up selling unauthorized or incorrect products. Whether due to deliberate malpractice or infiltration by counterfeiters, the incident highlights the critical need for end-to-end authentication and traceability systems. Notably, such systems not only prevent related issues but also provide the audit trail needed for accountability and corrective action. 

As industry challenges evolve, it is imperative for manufacturers, brand owners, and supply chain stakeholders to view product authentication and serialization not just as safeguards, but as enablers of trust, efficiency, and long-term value creation. 

Also Read: India's Path to Billion-Dollar Drugs: Building a Strong Ecosystem

Despite growing adoption of authentication systems, operational and regulatory hurdles persist, how are manufacturers overcoming these to integrate technology efficiently across supply chains? 

As part of the evolving journey in combating counterfeiting, brands were initially hesitant to acknowledge the existence of this issue in the market. Many were reluctant to admit, especially in public forums or marketplaces that counterfeit versions of their products existed, largely due to concerns about damaging consumer trust. 

However, this mindset has shifted significantly over the past four to five years. Brands are now increasingly open about recognizing counterfeiting as a real and pressing problem. There has been a clear and encouraging trend of companies becoming more comfortable with acknowledging the issue and actively seeking solutions. 

A notable example of this change is Mankind Pharma, which recently took a strong and commendable step by openly discussing the technologies being implemented within their supply chain. Their focus has been on both product authentication and preventing counterfeit items from entering the distribution network. 

As block chain and track-and-trace solutions gain traction, how are manufacturers implementing real-time serialization and digital tagging to secure drug integrity across India’s fragmented distribution networks? 

Supply chain solutions are evolving from relying on a single technology to leveraging a combination of technologies. As the shift occurs from purely physical solutions to digital ones, digital traceability becomes a key component. On one side, digital traceability requires a physical carrier on the product, such as a QR code or RFID tag. On the other side, it requires software to track and trace the product throughout the supply chain. This software could be built on traditional technologies like .NET or Java, or it could utilize block chain to enable traceability even at the pre-supply chain level. 

As a result, an interesting and diverse bouquet of solutions is emerging, combining both traditional and new technologies across physical and digital domains. These integrated approaches are now enabling comprehensive traceability solutions across the entire supply chain. Such a solution can potentially serve two different purposes for a brand. First, it can be used internally, allowing audit teams to track and trace the supply chain to ensure that only authentic products are being distributed in the market. Second, the brand can empower consumers directly through an app or similar interface, enabling them to verify product authenticity before making a purchase. 

Furthermore, leading brands both globally and within India are beginning to adopt these digital traceability solutions, reflecting a growing awareness of the value of transparency, authenticity, and consumer trust in the modern supply chain.

While companies invest heavily in authentication solutions, how are they quantifying ROI through reduced counterfeiting incidents, improved recall efficiency, and measurable operational gains? 

From an industry standpoint, the conversation around ROI is increasingly grounded in a clear, well-defined use case for adopting traceability and authenticity solutions. A fundamental shift that needs to take place within enterprises is the realization that such initiatives are not operational expenses, but strategic investments. When organizations begin to view the money spent on these technologies as a direct contributor to their bottom line, the mindset changes.  

This investment recovers revenue that rightfully belongs to the brand but is currently lost to counterfeiting and supply chain inefficiencies. In addition to enhancing profitability, these solutions protect brand equity and consumer trust, both of which are vital assets in competitive markets. 

Moreover, the rationale extends beyond financial gains. There is a strong socio-economic case for industry-wide adoption. First, it delivers measurable ROI through higher revenues and operational transparency. Second, it strengthens brand reputation and consumer loyalty by ensuring that only genuine, high-quality products reach the market. Third, it promotes ethical manufacturing practices by ensuring that production takes place in compliant facilities that uphold labor laws and fair wages.  

For the industry, investing in digital traceability and authentication technologies is not just a business decision it is a contribution to India’s broader development goals. This aligns with the national vision of Viksit Bharat, where innovation, compliance, and ethical practices form the backbone of industrial progress. The responsibility to build a trusted and transparent ecosystem does not rest with the government alone. 

Every industry player be it manufacturers, suppliers, or brand owners must play an active role in shaping a future where Indian industry is globally competitive, consumer-centric, and aligned with the values of integrity and inclusivity. 

Also Read: Anti-Infectives: How New Research is Shaping Infection Control

Given increasing regulatory pressure and consumer awareness, what are the key drivers influencing Indian pharma companies’ investments in advanced authentication technologies? 

At a fundamental level, from a regulatory perspective, there is a growing recognition by the government that counterfeiting and supply chain integrity is genuine and pressing issues. The government clearly understands the seriousness of the problem and acknowledges that, as a nation, India must focus on "Make in India".  

 Furthermore, to build and maintain goodwill on a national level, it is imperative that every company ensures the integrity of its supply chain. One of the key regulatory initiatives currently underway is focused on the top 300 Active Pharmaceutical Ingredients (APIs). For the first time, any pharmaceutical product being exported from India is expected to incorporate QR codes as part of its traceability mechanism. This marks an important first step by the government toward ensuring supply chain transparency in the pharmaceutical sector. 

However, while this initiative is commendable, it is not yet a complete solution. There is always room for improvement, and the government can certainly do more to strengthen these efforts. Any single technology, while useful, comes with its own limitations. 

 Therefore, a multi-technology approach is essential to build a solution that is not only traceable but also secure. The expectation is that such comprehensive solutions will evolve over time. The industry is encouraged by the direction the government has taken and remains optimistic that more robust, scalable, and integrated frameworks will be developed to address the complexities of supply chain integrity and product authentication on a national and global scale. 

With AI, IoT, and next-gen digital authentication emerging rapidly, how will these technologies transform pharmaceutical security and ROI in India over the next five years? 

The evolution of the authentication and traceability industry is unfolding naturally. Looking at the journey of the Authentication Solution Providers' Association (ASPA), the transformation is clear. Initially known as HOMAI (Hologram Manufacturers Association of India), the organization began with a focus on a single technology. Over time, ASPA recognized that multiple technologies were addressing the same core problem, counterfeiting and supply chain integrity, and thus expanded its scope to include a broader range of solutions. Several physical authentication technologies were integrated first, followed more recently by the inclusion of traceability technologies, which are now a critical part of the industry’s offerings. 

ASPA now hosts a flagship event called the Traceability and Authentication Forum (TASK), held approximately every 18 months. This platform brings together stakeholders from across the ecosystem, regulators, brand owners, and providers of various authentication technologies to collaborate on identifying viable, long-term solutions. It has become a significant gathering to shape the future of the industry. 

In terms of emerging technologies like blockchain, AI, and IoT, the industry views their adoption as part of a clear and ongoing journey. Notably, each technology addresses different aspects of the problem, and when integrated, they form a comprehensive solution. For example, one technology may secure the physical aspects of a product, while another ensures digital traceability, and together they cover the full spectrum of risks. The role of authentication solution providers is to seamlessly combine these technologies to build robust systems for brands. 

The industry often draws a parallel with the ongoing battle between viruses and antivirus software. Just as viruses evolve, prompting the development of stronger antiviruses, counterfeiters continually refine their tactics. The authentication industry must constantly innovate and improve to stay ahead, developing more secure, transparent, and advanced solutions for today’s and tomorrow’s challenges. 

Addressing recent incidents such as the cough syrup contamination cases, the industry strongly believes that stronger authentication and traceability systems could have significantly mitigated such failures. These incidents are deeply unfortunate and unacceptable, especially when children's lives are impacted. Although the specifics of the brand involved in that case may not be widely known, it is evident that the necessary technologies are already available in the market. 

From a technical standpoint, companies could have implemented physical authentication through security labels or moved to track-and-trace systems. The adoption of serialization and real-time verification tools would have ensured transparency and accountability across the supply chain. However, the implementation depends heavily on the intent and commitment of the brand owners. The industry maintains that this should not be seen as an expense, but as a critical investment in quality and consumer safety. 

Currently, the authentication and traceability sector is witnessing unprecedented growth, precisely because more brands are recognizing the importance of these solutions. While there is always room for improvement, both from the industry's side and the government's efforts are actively being made. ASPA continues to play a key role in advocating policy and regulatory changes, engaging with the government and stakeholders to emphasize the urgency of the problem. 

The association firmly believes that if a consumer is paying for a product, they have the right to receive a genuine and safe product. Incidents like the contaminated cough syrup serve as a wake-up call. The mandatory adoption of serialization and authentication technologies, especially in pharmaceuticals, should be a national priority.