The new hologram product developed by the firm can react to simple stimuli such as breath or water to reveal a hidden image or change colour to confirm a product's authenticity.
The device, developed by Cambridge University spin-out company Smart Holograms, adds an unconventional twist to the inert holograms that have been employed as security measures on packaging in the past and are increasingly being faked by counterfeiters.
"Standard holograms are really past their sell-by date as far as product security is concerned," Smart Holograms CEO Cynthia Larbey told In-PharmaTechnologist.com.
"In our hologram product, we use a variety of polymers between layers of film which are tuned to react to different stimuli.
The polymers swell as a result of the stimuli and light is refracted in a different way, giving a visual response to verify authenticity."
The company claims the downfall with traditional hologram labels is that operatives responsible for inspecting products must be very familiar with the look and design of the genuine product, or have a genuine sample to compare - which leaves open the possibility of human error whereby fake and potentially dangerous drugs could enter the supply chain.
The smart holograms can be integrated into a supply chain to any extent a manufacturer chooses, as the hidden image can be designed to fade and reappear as the stimulus is re-applied at a later stage, or employed as a single-use feature with the revealed image remaining permanently.
The holograms can be used as a track and trace mechanism, and combined with serialisation as well as hidden images to produce both overt and covert security features.
The extensive technological research that has gone into the product and the manufacturing complexity will make it an unattractive option for counterfeiters, according to Larbey.
"It will be a good few years before even the best counterfeiters could fake this," she said.
"By which time we'll have second and third generation products to replace it."
The first generation products have been designed to respond to moisture, so labels could be designed to react to breath or a water-pen to reveal an image.
The first commercial application of the technology has been to detect water in airline fuel, which will be rolled out in the third quarter this year.
Later generations of the product could be designed to respond to other stimuli such as heat, touch or chemical solutions.
Although the product will cost more than other hologram products currently available on the market, the company says the price will still be "within commercial boundaries" and is so simple to use and difficult to fake that it represents an appealing option for pharma companies hoping to protect their supply chains.
"There is no such thing as a silver bullet and this product doesn't pretend to be one," said Larbey.
"But with RFID still judged to be five years or more away this is a significant step forward in combating counterfeiting."
Several multinational pharmaceutical companies have already shown an interest in the security technology, and although specifics regarding the companies could not be disclosed, Ms Larbey told In-PharmaTechnologist.com that the firm is working with "some of the global giants" in the pharmaceutical industry.
She also revealed that one pharma in particular is considering the holograms for use with its consumer products that are heavily counterfeited in Asia and the Middle East, a problem many major pharmas suffer from.
Multinational firm Pfizer is a well-known victim of such illegal activity, with its erectile dysfunction drug Viagra (sildenafil) purportedly one of the most faked drugs on the market.
Smart Holograms has recently opened its first pilot manufacturing facility for the production of the new hologram products, which has capacity for around 60m labels a year depending on size.
Any further production requirements will be sub-contracted out to third part manufacturers.
The technology has a wealth of additional applications beyond product security, and the company is developing a range of products in diagnostic and medical devices sectors, particularly in the critical care market for diabetes.
Although currently in early stages of research, the company eventually hopes to offer continuous monitoring products for diabetes care in the form of subcutaneous sensors or even modified contact lenses.