What is the role of the National Drug Code (NDC)?

The National Drug Code (NDC) serves a crucial role in the identification of medications by providing a unique identifier for each drug product. This three-segment code consists of 10 to 11 digits and is assigned by the FDA to different medications, indicating the manufacturer, product, and trade package size. The primary purpose of the NDC is to ensure proper tracking and management of drugs throughout distribution, dispensing, and utilization.

By uniquely identifying each drug, the NDC helps pharmacies, healthcare providers, and regulatory agencies effectively monitor medication safety, inventory control, and adverse reactions. It facilitates the efficient organization of drug-related information, which is essential for patient care and public health. Additionally, the NDC is often used in various healthcare transactions, such as claims processing, thereby promoting accuracy in medication dispensing and billing.

This identification system does not specifically track drug pricing changes, classify drugs by therapeutic use, or regulate advertising. Each of those functions serves different purposes within the healthcare and pharmaceutical landscape.