In October 2023, the Deputy Prime Minister of the Republic of Kazakhstan received a proposal to implement a medication monitoring programme from the company Medical Value Chain (MVC). The reasons why this system was ultimately not adopted have not been disclosed. It is known, however, that JSC «Kazakhtelecom» has developed its own information system for product labelling.
The editorial board of the FBKK conducted an analysis of the two proposed information systems to determine which of the presented monitoring programmes is more effective.
It will be recalled that the Ministry of Digital Development, Innovations and Aerospace Industry of the Republic of Kazakhstan responded to a request regarding the implementation of the domestic monitoring system by stating that JSC «Kazakhtelecom» is the Single Operator for product labelling and traceability as a result of a tender process. Furthermore, we were assured that the costs for the development and operation of the proposed system are borne directly by the Single Operator, i.e., JSC «Kazakhtelecom».
However, it should be noted that the monitoring system proposed by JSC «Kazakhtelecom» operates exclusively within the Customs Union. This means that medicines are tracked from the border to the hospital or pharmacy. In the event of counterfeit production outside the Republic of Kazakhstan, this system will not be able to trace it, unfortunately, which significantly reduces its practicality.
Furthermore, this labelling system will place an additional financial burden on importers, who are obliged to label the goods, which, in turn, will lead to an increase in the prices of medicinal products.
Delivery times to the end consumer are also likely to increase. The maximum cost of a control mark for labelling medicines in Kazakhstan has been set at 2.4 tenge per unit, excluding VAT.
The company «Medical Value Chain» offers a global solution for implementing the MVC programme for tracking supplies and quality control of products across various product groups as a National Platform for Kazakhstan. The MVC programme is currently operational in EU countries, North and South America, the Asia-Pacific region, and the Middle East.
This company collaborates with major global pharmaceutical manufacturers, which makes it possible to track a product from the manufacturer in any country to the end consumer.
MVC also provides access to reliable information on the actual location and origin of pharmaceutical products at all stages of production, processing, and distribution. At the same time, importers are relieved of additional costs for product labelling.
In addition, all work related to the implementation of the National Platform of Kazakhstan for state structures and regulatory bodies at all levels – namely, the installation of necessary equipment, software, training, and maintenance – will be carried out by the company «Medical Value Chain» and at its expense.
As is known, the implementation of a system for monitoring and traceability of goods, especially medicinal products, is a necessity. According to the World Health Organization (WHO), 10.5% of the pharmaceutical trade is counterfeit.
According to the Association of International Pharmaceutical Manufacturers, counterfeits account for 5-7% of the pharmaceutical market in developed countries worldwide.
In emerging markets, which include Kazakhstan, the proportion of counterfeit medicinal products varies from 10% to 50%. In the republic, the share of counterfeit goods, according to various sources, is 11-12%. The issue here is probably not only the shadow trade in goods but also the danger posed by the production of pharmaceutical counterfeits.
It is for this reason that when choosing the Single Operator, it is important to focus not so much on departmental interests but on the interests of consumers, and to opt for a more effective system capable of providing complete and reliable information on the origin and movement of medications. After all, this concerns the health of the nation.