Our role in the U.S. pharmaceutical supply chain:

Cardinal Health

Manufacturers:We work with: •1,300+ manufacturers • 70,000+ products

Cardinal Health:•25 pharmaceutical distribution facilities•6.9 MM deliveries/year

Healthcare providers:We distribute to :• 24,000 retail pharmacy

locations• >3,600 hospitals• 4,000+ physician office and

surgery center locations• 150 mail order locations

Best-in-class systems: Cardinal Health Suspicious Order Monitoring (for Controlled Substances); Cardinal Health Know Your Customer Sales Force Training; Cardinal Health’s “Wholesaler Safe Practices” training; practices consistent with Healthcare Distribution Management Association Distributor Guidelines; Authorized Distributor of Record to pharmaceutical manufacturers

When we take care of the business behind healthcare, providers can focus on their patients .

Cardinal Health role:•Just-in-time, next day delivery of medicines to points of care.•Protect security and integrity of supply chain

Manufacturers role:•Physically manufacture pharmaceutical products

Where prescription drug diversion can happen

PharmacyDistributor

Transportthefts

• Employee thefts• Robberies• Rogue website• Fraudulent

prescriptions filled

This illustrates where needed medicines can be misappropriated for diversion or abuse

•Employee thefts•Facility robberies

Manufacturer

Transport thefts

•Employee thefts•Facility robberies Sick patient

• Meds stolen• Meds not disposed

of properly• Family member/

friend theft• Meds shared

Illegitimate patient• Abuse• Selling

CaregiverThefts

Doctor office•Theft of Rx pad•Fraudulent prescriptions•Self-medication•Employee theft

Onsite

Pharmacy

This illustrates where Cardinal Health intervenes to help address the diversion of prescription medicines and the societal issue of prescription drug abuse

• Generation Rx• Medication

Disposal Days

Where Cardinal Health helps fight diversion and abuse

DistributorManufacturer

Global Positioning System (GPS) Freightwatch

GPSFreightwatch

• Distribution center security system

• Compliance officers onsite• Compliance training• Know-your-customer

training• Onsite drug testing• Clothing requirements

• GPS• Tote wrapping

or strapping• Unmarked totes• Secure vehicles• Electronic

proof-of-delivery

Suspicious order monitoring

• Sponsor of continuing education for pharmacists

Advanced analytics and anti-diversion experts flag unusual orders