Solving the Costly Data Integrity Problem in Pharma with Blockchain Technology?

Gyan Consulting
6 min readJun 28, 2023

In the ever-evolving pharmaceutical industry, data integrity plays a crucial role in ensuring seamless operations. As our world becomes increasingly interconnected, the complexity of data has grown exponentially, underscoring the need to preserve its integrity. Failing to maintain data quality standards can result in significant financial implications, with companies facing an average annual cost of $15 million.

Violations of data integrity can lead to severe consequences such as financial losses, legal complications, and reputational damage. In this article, we will explore how blockchain technology can solve the costly data integrity problem in the pharmaceutical industry, mitigate risks, and establish a transparent and trustworthy ecosystem.

Maintaining Data Integrity

Data integrity has emerged as a fundamental requirement in the regulatory guidelines of the pharmaceutical industry, mandating rigorous testing of products before and after regulatory approval. The specific standards for data integrity may vary depending on the location of pharmaceutical production.

For example, in the United States, products adhere to the FDA Data Integrity and Compliance with Drug CGMP regulations. This framework is designed to ensure the quality of pharmaceutical products and provide stakeholders with the assurance that the outcomes have remained unaltered.

Maintaining data integrity involves implementing protocols and training for individuals responsible for generating and managing data. It also entails establishing functional and technical attributes that must be operational in computerized systems, including quality control analytical systems, production floor systems, and enterprise IT systems.

One of the critical challenges in upholding data integrity is keeping systems up to date. Engineers often require assistance in incorporating data integrity requirements into older systems that function adequately but lack support for new regulations, such as recording an audit trail. This predicament often necessitates the replacement of outdated systems, resulting in substantial costs that may only be feasible for some companies.

Data Integrity Failures

Analyzing data integrity deficiencies and violations highlighted by regulatory authorities like the FDA, MHRA, and European regulatory bodies reveals that a significant portion of these issues stems from inadequate systems and processes. Digging deeper into the matter, data integrity problems can be attributed to various factors, including:

  • Pressure to Meet Expectations

The desire to satisfy influential clients or stakeholders may lead to compromising data integrity. The pressure to deliver favorable outcomes can tempt individuals to selectively present data that supports a predetermined hypothesis.

  • Confirmation Bias

The inclination to seek evidence that confirms preconceived notions or expectations can undermine data integrity. Selecting results that align with desired outcomes while disregarding contradictory data can introduce biases and compromise the accuracy of findings.

  • Process Shortcuts

Complex and bureaucratic processes can sometimes drive individuals to take shortcuts to expedite tasks. These shortcuts, although seemingly time-saving, can jeopardize data integrity by bypassing essential quality checks and validation steps.

The Value of Blockchain

Drawing on extensive experience in testing and validation, we have witnessed the maturity and reliability of blockchain technologies. In a specific use case we were involved in, we successfully implemented a solution to enforce data integrity requirements on legacy laboratory analytical systems.

During the project, the blockchain solution not only extended the lifespan of these systems but also provided significant value to the business by ensuring the security and integrity of data. This includes securing the data flow from the laboratory to the end user who needs access to the lab results.

By leveraging this technology, it becomes possible to encapsulate the software, configuration, and data within a secure blockchain envelope. This approach allows us to track the data flow, ensuring its completeness and safeguarding it from tampering or alterations en route to the end customer. The process provides certification of the soundness of the results without requiring the replacement of the company’s older analytical equipment, resulting in substantial cost savings by eliminating the need to acquire and integrate new systems.

Overcoming Challenges and Adoption Hurdles

While the potential benefits of blockchain in addressing the data integrity problem in the pharmaceutical industry are significant, there are several challenges and hurdles that need to be overcome. Let’s take a closer look at these challenges and explore potential solutions:

  • Integration with Legacy Systems
    Integrating blockchain with existing legacy systems can be complex and requires careful planning. To ensure seamless data exchange, interoperability standards, and protocols are essential.


Companies can consider implementing interoperability protocols and standards that enable smooth integration between blockchain and legacy systems. Collaborating with experienced blockchain solution providers can help develop customized solutions tailored to the existing infrastructure.

  • Scalability and Performance
    Blockchain networks need to handle large volumes of data and transactions in real time. Scaling blockchain solutions to meet the demands of the pharmaceutical industry requires advancements in technology and infrastructure.

Ongoing research and development efforts are focused on enhancing the scalability and performance of blockchain networks. Innovations such as sharding, sidechains, and layer-two solutions can increase transaction throughput and reduce latency.

  • Regulatory and Legal Considerations

Like any emerging technology, this technology faces regulatory and legal challenges. Governments and regulatory bodies need to establish frameworks that support the adoption and implementation of blockchain solutions in the pharmaceutical industry.

Collaboration between blockchain solution providers, pharmaceutical companies, and regulatory bodies is essential. Working together, they can develop regulatory frameworks that accommodate the unique characteristics of this technology.

  • Cost and Resource Allocation
    Implementing this technology may require significant investments in infrastructure, talent, and training. Companies need to strategically allocate resources to ensure successful adoption.


To address the cost and resource allocation challenges, companies can consider phased implementation approaches. Starting with pilot projects or collaborations with key partners allows for testing the effectiveness of blockchain solutions in specific areas.

What’s the Roadmap?

To navigate these challenges and foster the widespread adoption of blockchain technology in the pharmaceutical industry, several key steps can be followed:

  • Pilot Projects and Proof of Concepts
    Companies can initiate small-scale pilot projects to test the feasibility and effectiveness of blockchain solutions in specific areas such as supply chain management or clinical trials. These projects will help identify challenges, refine strategies, and demonstrate the benefits of blockchain to stakeholders.
  • Standards and Interoperability

Establishing industry-wide standards and protocols for blockchain implementation is crucial. This will ensure interoperability between networks and systems, enabling seamless data exchange and collaboration across stakeholders.

  • Regulatory Frameworks

Regulatory bodies need to develop frameworks that accommodate the unique characteristics of this technology. This includes addressing legal aspects, defining data ownership and privacy rights, and recognizing the validity of blockchain-based records. Collaboration between blockchain solution providers, pharmaceutical companies, and regulatory bodies is vital in shaping these frameworks.


Data integrity is of utmost importance in the pharmaceutical industry, carrying personal, legal, financial, and reputational consequences for organizations. To proactively address data integrity challenges across the entire data lifecycle, scientific laboratories, especially those involved in research and development, must incorporate data integrity best practices.

By leveraging blockchain technology, companies can revolutionize data integrity, mitigate risks, and establish a transparent and trustworthy ecosystem. Overcoming challenges related to legacy system integration, scalability, regulatory considerations, and resource allocation will pave the way for the widespread adoption of solutions in the pharmaceutical industry.

Embracing these advancements ensures compliance with regulatory standards, enhances patient safety, and facilitates the development of the most effective treatments available.

For more info, visit Gyan Consulting.



Gyan Consulting

Consulting and developing blockchain solutions for enterprise-level web and mobile solutions.