Tightened EU Regulations Enabling Blockchain Technology in Pharmaceutical Supply Chain

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Blockchain technology has the potential to create new foundations for global businesses. Its provision of an immutable, global, online ledger for transactions that includes a verification mechanism will undoubtedly lead to disruptive innovations across all sectors. While most Blockchain investors have seen interesting applications in fintech, the Switzerland based modum.io is one of the few start-ups focused on the 8.1 trillion USD global logistics market.

In particular, modum.io is focusing on the highly regulated pharmaceutical logistics market, which currently relies on old and expensive methods in order to meet new regulations. modum.io tackles the market need for new, cost effective alternatives for compliance with sensor devices and a Blockchain back-end.

Oversubscribed Pre-Token Sale – Public Token Sale starts September 1st

To finance the market entry of their Blockchain based temperature monitoring system, modum.io announced on August 14th that it would hold a public token sale beginning September 1st. Its invite only pre-sale was oversubscribed within one day, selling 2.1 million tokens. modum.io is one of the few companies offering profit participation and voting rights with their token.

These benefits to investors and the maturity of the start-up (it has a working product, commercial traction, major partnerships, and hardware ready for mass production) makes this public token sale a highly anticipated opportunity for investors in the Blockchain space. The funds raised will be used to bring the first product to market and to further develop the modum system.

Regulatory driven first application

The new EU GDP regulation (GDP 2013/C 343/01) requires proof that shipped medicines have not been exposed to conditions, particularly temperatures, which may compromise their quality. These regulations are now enforced across Europe. It is likely that regulations in the United States (draft chapter 1083: “Good Distribution Practice”) will follow suit, in a similar direction.

To date, pharmaceutical companies meet requirements via expensive, temperature-stabilized trucks and containers from third-party logistics providers. For the majority of medicines, which are not temperature sensitive, this is excessive from a cost and regulatory perspective.

“Our system reduces the need for costly and inefficient actively-cooled transport solutions. Logistics services could save up to 3 billion EUR annually with our passive monitoring strategy,” explains CEO Malik El Bay.

The modum system offers an alternative supply-chain solution, ensuring GDP compliance and auditability. The sensor devices record the environmental conditions (temperature, humidity, movement, etc.) that a shipment has been exposed to while in transit; senders can pre-program these alarm criteria into the Blockchain. The sender and the receiver will then be notified if a deviation in conditions, that may affect the quality of the product, has occurred. The records are immutable and auditable.

According to El Bay:

“After testing our system with several leading pharma distribution companies and implementing their feedback, we have begun preparation for the mass production of the first batch of sensor devices.”

The commercial launch of the modum system is planned for Q1 2018. Until then the start-up is focused on its token sale, which starts September 1st, and the ongoing integration of the system with select logistic service provider market leaders.

About Richard Kastelein

Founder of industry publication Blockchain News, partner at ICO services collective CryptoAsset Design Group (helped raise over $200m+), director of education company Blockchain Partners (Oracle Partner) and ICO event organiser at leading industry event  CryptoFinancing (first ICO event in Europe) - Richard Kastelein is an award-winning publisher, innovation executive and entrepreneur. He sits on the advisory boards of half a dozen Blockchain startups and has written over 1200 articles on Blockchain technology and startups at Blockchain News and has also published pioneering articles on ICOs in Harvard Business Review and Venturebeat.
 
Kastelein has spoken (keynotes & panels) on Blockchain technology in Amsterdam, Antwerp, Barcelona, Beijing, Brussels, Bucharest, Dubai, Eindhoven, Gdansk, Groningen, the Hague, Helsinki, London, Manchester, Minsk, Nairobi, Nanchang, San Mateo, Shanghai,Tel Aviv and Venice. His network is global and extensive.
 
He is a Canadian (Dutch/Irish/English/Métis) whose writing career has ranged from the Canadian Native Press (Arctic) to the Caribbean & Europe. He's written occasionally for Harvard Business Review, Wired, Venturebeat, The Guardian and Virgin.com and his work and ideas have been translated into Dutch, Greek, Polish, German and French.
 
A journalist by trade, an entrepreneur and adventurer at heart, Kastelein's professional career has ranged from political publishing to TV technology, boatbuilding to judging startups, skippering yachts to marketing and more as he's travelled for nearly 30 years as a Canadian expatriate living around the world.
 
In his 20s, he sailed around the world on small yachts and wrote a series of travel articles called, "The Hitchhiker's Guide to the Seas' travelling by hitching rides on yachts (1989) in major travel and yachting publications. He currently lives in Groningen, Netherlands where he's raising three teenage daughters with his wife and sailing partner, Wieke Beenen.

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