South Korea Pharmaceutical Company Combats Counterfeiters with RFID Labels

UPM Rafsec will supply RFID (Radio Frequency Identification) label transponders to the South Korean pharmaceutical company, Unimed Pharm Co., Ltd, for the tagging of individual packages of over-the-counter drugs. The agreement consists of the delivery of 100,000 RFID labels during 2004.

Unimed Pharm will use the RFID labels in an effort to identify original drugs among counterfeit drugs. The tags are round coils, 24 mm in diameter, and they are attached to the inside of the cap of the container with a permanent adhesive. Once in place, the system will allow consumers to verify the authenticity of drugs they purchase at the pharmacy.

In addition, with the real-time data on supply chain operations that the system will generate by tracking the RFID labels, Unimed Pharm will be able to monitor its distribution channels from production, through distributors and wholesalers to the retailers, in order to control grey market activity, cut down on shrinkage and control retail prices more effectively. These product management and tracking applications will be made possible by connecting the RFID system to the company’s existing ERP (Enterprise Resource Planning) system.