NEW YORK, March 4 /PRNewswire/ -- The market for RFID applications in pharmaceuticals, with revenues of $35 million in 2006, is conservatively estimated to reach $600 million by 2012, with a CAGR of 60%. One quarter of the major pharmaceutical companies are expected to implement large scale RFID projects to reduce costs, improve inventory control, track clinical trials and manage samples, according to a new market study by Kalorama Information, RFID in Pharmaceutical Manufacturing.
With the total pharmaceutical market expected to hit $1 trillion by 2020, doubling from 2005 levels, the FDA and state governments are requiring additional product tracking to curb counterfeit drugs and improve patient safety and product integrity. RFID is positioned to be a top solution to help companies efficiently cope with the changing structure of the industry.
The adoption of RFID is being driven by two important factors: a huge drop in hardware prices (about 80% since 2000) and the promise of major cost-savings. With the implementation of RFID, large manufacturers can save $17-55 million annually, while large distributors can save about $10 million. In addition, as much as 40% of inventory can be managed more efficiently.
"Drugs change hands at various points in the pharmaceutical supply chain -- in the packaging operation, at the distributors, retail pharmacies and hospitals," notes Bruce Carlson, publisher of Kalorama Information. "Each transaction carries risk of counterfeiting, dilution or diversion, which lead to fatal ramifications such as improper doses, contamination and incorrect ingredients. RFID is a means of reducing these risks."
Kalorama Information's report RFID in Pharmaceutical Manufacturing analyzes the current and potential market and opportunities in the U.S. for RFID in pharmaceutical manufacturing and distribution, including the cost of implementation, key market trends and dynamics and customer preferences. Various solutions are provided for the main segments of the healthcare industry: hospitals, nursing homes, pharmaceutical manufacturers, distributors and pharmacies. The information presented is the result of primary research interviews conducted with industry executives, as well as data gathered through secondary research. The report can be purchased directly from Kalorama Information by visiting http://www.kaloramainformation.com/RFID-Pharmaceutical-Manufacturing-161409 2/
About Kalorama Information
Kalorama Information supplies the latest in independent market research in the life sciences, as well as a full range of custom research services. For more information, contact Andrea Hiller at 212-807-2673 or firstname.lastname@example.org, or visit http://www.kaloramaInformation.com.
|SOURCE Kalorama Information|
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