“Momentum for blockchain in healthcare is growing in Basel”
03 December 2018
Marco Cuomo and Daniel Fritz from Novartis got engaged in blockchain two years ago. Today, their aim is set high: With other pharma companies under the Innovative Medicines Initiative, they formed a “Blockchain Enabled Healthcare” program, due to kick off in 2019. The program that they presented at the Blockchain Leadership Summit in Basel – Switzerland’s largest conference in this field - wants no less than to define how blockchain is applied in healthcare.
Marco Cuomo and Daniel Fritz from Novartis
BaselArea.swiss: You both work for Novartis that is known for pharmaceutical products but not for technology. How come you started to explore the possibilities of Blockchain in the first place?
Marco Cuomo: We got curious about blockchain and wanted to know which problems we can solve with the technology. A handful of interested people had an informal meeting, we formed a group and basically got to the essence of blockchain. That started two years ago.
What did you find?
Marco Cuomo: First of all we found use cases to learn more about it. This is how the supply chain got on our radar because Blockchain is applicable to tracking and tracing. We involved Dan who is our Supply Chain Domain Architect to build a supply chain from the manufacturer to the pharmacy with LEGO robots…
Daniel Fritz: …where we integrated IoT sensors for temperature and humidity as well as a counterfeit product check. We learned for ourselves about the power of blockchain and what is possible.
Marco Cuomo: Our LEGO demo clearly helped to illustrate our point internally as well as externally. We also quickly realized that other pharmaceutical companies must have the same discussions. So we brought other companies to the table.
Why did you not just develop something on your own?
Marco Cuomo: Of course, you can have for example your own cryptocurrency – and then what? To exchange it, you need other parties who use the same cryptocurrency as you do. No, blockchain is not just a new technology that you learn, implement and benefit from. The key feature is to transfer something valuable from one party to the next. Take the supply chain of pharmaceutical products that involves the manufacturer, the distribution center, wholesale, pharmacy, doctor and hospital. Here, blockchain starts to make sense.
Marco Cuomo: With blockchain, you do not have to change any supply management system on your side. Instead, you create a kind of common ground. You do not need an intermediate as blockchain is taking that role. We tend to say that it is a team sport because everybody has to play by the same rules.
What is in it for the life sciences industry?
Daniel Fritz: When we show and explain what blockchain is about, we not only cover the basics. Instead, we also look on what we could potentially design as a solution to build upon the regulatory framework. People think, wait, we can even go beyond the law and uncover some business value. I think most people can quickly see that blockchain offers many benefits over the existing technologies that we have in place.
Marco Cuomo: What is in it is efficiency which comes down to saving money, be faster and more secure. Electronic records can be transparently shown in the blockchain. If something fails in the cool chain, everybody can see what happens immediately. Now you wait till a product arrives at the target to then find out that it is flawed and finally start the process for a resend. With blockchain the flawed product never even has to leave the manufacturer.
Daniel Fritz: With other supply chains it is similar. People want to buy organic food – how do you know it is bio? With blockchain, we can guarantee the provenance of a product and remove or reduce counterfeits from the supply chain. This benefits the industry and the patients.
Marco Cuomo: Speaking of patients: It is the holy grail to bring patients in control of their data. Today the data sits in the different silos, with the hospitals, with physicians for example. With the blockchain, we think there is the potential to open that up so that patients can decide who sees my data.
Where do you see other advantages of Blockchain based healthcare?
Marco Cuomo: Our CEO Vas Narasimhan has the vision to create a medicine based on data only, from real world evidence. Blockchain can help to track and trace the data to guarantee its proper provenance. Another opportunity are data marketplaces where you can offer your data to pharmaceutical companies and researchers. Blockchain could help with that. Where normally it would take time to build up the trust for such an exchange of very sensible and valuable data, there is no need for that with blockchain. Novartis hopes that we can use this data to create new medicine in the future. We are also looking into third party risk management.
How can we make sure that our suppliers comply to our labor and safety rules? Why should we have the same audit ten times a year instead of once? Why should these assessments not be owned by the supplier – if we are guaranteed that the supplier is not manipulating them?
You started two years ago as a small group. Where are you now?
Marco Cuomo: We realized that we need to define certain standards to lay the infrastructural ground for Blockchain in healthcare. That is why we submitted the project “Blockchain enabled healthcare” with the Innovative Medicine Initiative where Novartis is already heavily engaged with more than 100 projects. We convinced eight other companies to join: J&J, Bayer, Sanofi, AstraZeneca, UCB, Pfizer, Novo Nordisk, and AbbVie are part of it. The money comes half from the industry, the other half is from the EU, in total 18 million Euro for three years. Applications for the consortium that should include hospitals, labs, patients, SME and universities to work with us closed in October. After that, we will form a project together and start with it late next year.
What is blockchain enabled healthcare about?
Marco Cuomo: The main goal is to define standards to create a governance body that will last longer than the project itself. Like the W3C, the World Wide Web Consortium that is defining technical standards of the web, we hope to be the same for Blockchain in healthcare. Take the internet – it also needed someone who defined some standards so everyone could build on that. The same will happen here, hopefully. Imagine if Novartis was to implement their own blockchain and has to convince thousands of suppliers to use it. If the next company does the same, end-to-end product tracking becomes impossible for the parties involved. Why should doctors use our system or the other one? Also, the patient journey does not only include pills from Novartis. You need a standard.
How easy was it to convince the other companies to come on board?
Daniel Fritz: Some of the companies we asked jumped on board immediately. Others needed to understand our vision in more detail. So we had a lot of talks which were very positive as we were able to establish a high level of trust and collaboration within the consortium, which is really what blockchain is about.
In which ways did it help to be in Basel to start this journey?
Marco Cuomo: It started here and Novartis is leading it. All the companies and the academia we talked to form the initial approach to the program are close. It also helps to have a CEO who strongly supports digital initiatives and a CDO who sees the potential.
Daniel Fritz: Momentum for blockchain in healthcare is growing in Basel, in Novartis, and globally. It will benefit patients and the industry, but we have a lot of hard work in the consortium and with public partners to get there.
Marco Cuomo is Manager of Applied Technology Innovation and a Senior Digital Solutions Architect with Novartis. He started with Novartis in 2005 as a Business Informatics Engineer and gained a Bachelor of Science in Business Administration.
Daniel Fritz works as the Supply Chain Domain Architect at Novartis. Before that he was an engineer officer with the US Army and a Materials Manager. He studied at the US Military Academy at West Point and gained a Master of Business Administration from Duke University.