The Food and Drug Administration Monday announced an initiative to encourage the use of RFID by drug companies.

RFID stands for radio frequency identification, the burgeoning scanning technology behind the Wal-Mart EPC (Electronic Product Code) that becomes mandatory for some Wal-Mart suppliers in January.
RFID is similar to bar code, except that its tags can be read electronically without a line-of-sight. Unlike bar code, the advanced RFID tags required by Wal-Mart and now encouraged by the FDA, can be written to as they move through the supply chain.
The FDA initiative, which had been expected, is aimed at keeping tabs on controlled substances like prescriptions drugs. However, it does mean more and more freight carrying RFID tags will be passing through the supply chain, riding on trailers and crossing freight docks. If standards are arrived at and honored as is likely, carriers will be able to read those tags, even write information to them in some cases.
It is unclear at this point how the new technology in the freight stream might benefit carriers.
The FDA has published a Compliance Policy Guide for implementing RFID feasibility studies and pilot programs to enhance the safety and security of the drug supply. According to the FDA press release, “This action continues FDA's commitment to promote the use of RFID by the U.S. drug supply chain by 2007.”
The FDA applauded the initiatives announced by the pharmaceutical companies Pfizer, GlaxoSmithKline and Purdue Pharma. Pfizer announced its plans to place RFID tags on all bottles of Viagra intended for sale in the U.S. in 2005.
GlaxoSmithKline announced that it intends to begin using RFID tags in the next 12 to 18 months on at least one product deemed susceptible to counterfeiting. Purdue Pharma announced that it is placing RFID tags on bottles of pain killer OxyContin and Palladone, a newly approved product to treat persistent, moderate to severe pain.