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Counterfeit Medicine Detection Using Blockchain and AI

Feasibility Study and Pilot Start

The Specialized Inspection Agency of Tuv Province and the Government of Mongolia Feasibility Study and piloted a project called “Counterfeit drug detection using Blockchain and AI” to eliminate fake drugs from the market, and save the thousands of lives. The project will increase safety and transparency of the drug industry, tracing the pharmaceutical supply chain in Mongolia, as well as globally.

Innovation Summary

Innovation Overview

To track, trace and organize a pharmaceutical supply-chain effectively is costly; it is a challenge that goes from the manufacturer to the end user. Due this difficult challenge, about 200 million USD fake medicine enters the market, with the result of millions of people dying around the world.

The objectives of feasibility study and pilot:

1) Pilot the elimination of the counterfeit drugs using advanced technologies such as Blockchain, Artificial Intelligence (AI) and Big data analysis, to save thousands of lives.
2) Demonstrate the benefits of Blockchain Technology practical novel way in the public sector, as well as to the society.
3) Increase the transparency of the pharmaceutical supply chain.

The feasibility study covers national-wide system implementation, while the pilot covers one of the provincial levels out of 18 to demonstrate the system.

Using the mobile application all the stakeholders, government inspection agency, pharmaceutical industry, whole sellers, distributors, retailers, consumers will scan the label of drugs, thus all the history information from manufacturers to the retailers, as well as the consumer can check the expiration date easily from the app.

It will be innovatively contribute to the specialized inspection agency to track and trace the non-standardized or fake medicine for the public safety. Customers will know the history and originality of their purchased medicine. Manufacturers will benefit the elimination of their brand fake medicine producers.

Ultimately, the project aims to save thousands of lives due to fake medicine, not only at national level, but also globally.

Innovation Description

What Makes Your Project Innovative?

Advanced technologies used include blockchain, AI and big data analysis. Blockchain enables the immutable shared records of database among all stockholders in the pharmaceutical supply chain more efficient and easily track and tractability inspection. Moreover, blockchain technology enables to check the authenticity of drugs. AI will detect the counterfeited drugs along analysis of all the supply chain, and report automatically. Thus, the solution with these advanced technologies is first time introducing to the public sector the Specialized inspection agency of Tuv Province, for the public safety in Mongolia to prevent non-standardized and fake medicine at national level.

What is the current status of your innovation?

We started a cooperation project since February of 2018, and made MoU between The Specialized Inspection Agency of Tuv Province, Mongolia and The FarmaTrust company of The United Kingdom. As submission of Oct 2, 2018, the Feasibility Study report is at the final stage and Pilot system test is at a beginning stage.

Innovation Development

Collaborations & Partnerships

Collaboration and Partnership for Feasibility Study and Pilot:

The Specialized Inspection Agency of Tuv Province, Mongolia.
Companies: The FarmaTrust Ltd., The United Kingdom.
Civil Society Organization: The Mongolian e-Government Center NGO, Mongolia.

Further at the national scale project, planning to include other Mongolian government organizations, and pharmaceutical industry supply chain related companies in Mongolia. The main consumers will be the citizen in the future.

Users, Stakeholders & Beneficiaries

Citizens and Government will benefit enabled to track & trace non-standard and fake drugs,
Pharmaceutical companies will benefit to track and trace their products until to the consumers, and eliminate the fake products from the market if exists.

Innovation Reflections

Results, Outcomes & Impacts

Conceptually, we expect that this innovative solution will transform the transparency and visibility of the pharmaceutical industry, and effect better world with saving thousands of lives eliminating the counterfeit drugs. Moreover practically to see how the advanced technologies such as blockchain, AI and big data analytics are helping on this initiative as piloting.

Challenges and Failures

The challenges faced on the national regulatory framework on the falsified medicine directory. It also requires all the supply chain partners work as together, and imported medicine cases need to cooperate with the overseas pharmaceutical industries to promote them to use the app in the future.

Conditions for Success

The Specialized Inspection Agency of Tuv Province is highly interesting in this new solution and technology to adopt for against the counterfeit drugs. Through the Feasibility Study, we will recommend necessary policy and rules to Mongolian government organizations for the national scale project.


The solution started from the pilot in one provincial level test lead by government organization, then replicated to national scale including rest of 17 provinces.

The solutions can be replicated by other government, as well as able to extend by global pharmaceutical supply chain in the future.

Lessons Learned

Piloting new innovative technologies such as blockchain, AI and Big data analytics to public sector, will be bring greater efficiencies, enables a safer environment to protect against counterfeit drugs.

Project Pitch

Supporting Videos


  • Identifying or Discovering Problems or Opportunities - learning where and how an innovative response is needed
  • Generating Ideas or Designing Solutions - finding and filtering ideas to respond to the problem or opportunity
  • Developing Proposals - turning ideas into business cases that can be assessed and acted on

Innovation provided by:


Date Published:

29 March 2018

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