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We have developed a magnetic sensor-based wireless pharmaceutical compliance monitoring (PCM) system using an array of magneto-inductive sensors mounted around the patient's neck in the form of a tight necklace. This system detects the passage of a pill or capsule embedded with a small permanent magnet as a tracer through the esophagus upon ingestion. As a result, a signal representing a ldquodose ingestion eventrdquo is generated and wirelessly transmitted to a data delivery device (PDA), which is carried on the patient's body. A software application running on the PDA time/date stamps the event and stores it for later retrieval by a physician. This technology provides a safe, convenient, low-cost, and accurate detection mechanism that helps patients adhere with their prescribed medication regimens. It also helps researchers and pharmaceutical companies conduct more accurate clinical trials on new drugs. A proof-of-concept prototype system using off-the-shelf components and custom PCB has been developed and successfully tested. Preliminary results using an artificial neck showed 94.4% correct detections when the magnetic tracer passed through the detection zone and about 6% false positives for outside areas.