Roadblocks to Pharma RFID adoption identified

Market research firm Health

Industry Insights, an IDC

company, has announced

survey findings that identify the top

factors contributing to the pharmaceutical

industry’s slow adoption of radio

frequency identification (RFID)

technology.

Results from a survey of 143 life

sciences industry leaders names

technology cost and lack of demonstrated

return on investment (ROI) as the

number one roadblock contributing

to slow RFID adoption, followed closely

by the lack of an item-level frequency

standard. Other reasons, in order of

importance, cited include security/privacy

concerns, lack of pressure from Federal

Drug Administration, and unreliable

read rates.

“While many pharmaceutical

companies are eager to begin their

RFID pilot work, we’re seeing a freeze on

project funding until an item-level

Roadblocks to Pharma RFID

adoption identified

frequency standard is established.

Evaluations are being hindered by

corporate fear of investing in the

wrong infrastructure,” says Eric

Newmark, Senior Research Analyst

at Health Industry Insights. “It is

unfortunate that patient and consumer

safety is being delayed due to something

this trivial.”

The report goes on to spotlight the

slower-than-expected RFID adoption

with additional survey findings.

Results reveal less than one in five (16

percent) pharmaceutical companies

are currently evaluating the benefits of

RFID technology, and even fewer

(15 percent) companies adopting

RFID in some capacity. Overall,

the report indicates average life

science company spend on RFID

t e chnology is approximat e l y

US$25,000, although this level is

expected to triple to $75,000 over the

next 12 months.