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Product Pedigree Ron Bone, MBA Sr. Vice President, Distribution Support McKesson Pharmaceutical

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Page 1: Product Pedigree

Product Pedigree Product Pedigree

Ron Bone, MBASr. Vice President, Distribution SupportMcKesson Pharmaceutical

Ron Bone, MBASr. Vice President, Distribution SupportMcKesson Pharmaceutical

Page 2: Product Pedigree

Pharmacy Purchasing Outlook Networking Conference August 9, 20062

Session AgendaSession Agenda

Marketplace Trends•Trends of a growing problem•Growth of state legislation

Pedigree Overview• Industry collaboration•RFID

Pharmacy Considerations

Page 3: Product Pedigree

Marketplace TrendsMarketplace Trends

Page 4: Product Pedigree

Pharmacy Purchasing Outlook Networking Conference August 9, 20064

The FDA has been Opening Cases Since 1997The FDA has been Opening Cases Since 1997

Page 5: Product Pedigree

Pharmacy Purchasing Outlook Networking Conference August 9, 20065

Drugstore CowboysThe Dangerous Traffic in Fake

Prescription Medicines

Vanity Fair May 05

There has been Recent Negative Press CoverageThere has been Recent Negative Press Coverage

Page 6: Product Pedigree

Pharmacy Purchasing Outlook Networking Conference August 9, 20066

Counterfeit Labeling Of EpogenCounterfeit Labeling Of Epogen

Page 7: Product Pedigree

Pharmacy Purchasing Outlook Networking Conference August 9, 20067

FDA Combating Counterfeit DrugsFDA Combating Counterfeit Drugs

February 2004• Called for the use of RFID

May 2005• Called for Electronic Track

and Trace

December 2004• Called for Pedigree Database

May 2006• PDMA Final Rule effective

12/2/06. Reaffirms RFID Dropped the central Database

Page 8: Product Pedigree

Pharmacy Purchasing Outlook Networking Conference August 9, 20068

DRAFT

PDMA 1999 Final Rule(if implemented as currently written)

Mfr. ADR

Mfr. ADR Non-ADRPharmacyor AnotherDistributor

Mfr. ADR ADR Pharmacy

Mfr. ADR Non-ADR ADR Pharmacy

Pharmacy1. ADR to Pharmacy No Pedigree

2. ADR - ADR No Pedigree No Pedigree

3. ADRTo

Non-ADR

No PedigreeRequired

(DefactoPedigreeImplied)

Pedigree

Back to Mfr. Dates, Lot #, etc.

4. ADRCleansing

NoPedigree

(DefactoPedigreeImplied)

Pedigree

Back toMfr. Dates,Lot #, etc.

NoPedigree

Explanation• By “defacto” pedigree, we mean that even though the rule doesn’t require a pedigree for an ADR to sell to another ADR, the first ADR must supply the pedigree information for the second one so that the second one may meet the rule’s requirements.• Pedigrees must contain the following information for all transactions going back to the manufacturer: Drug names, Dosage, Container size, Number of containers, Lot #, Business name and address of all parties to each prior transaction (including manufacturer).

Page 9: Product Pedigree

Pharmacy Purchasing Outlook Networking Conference August 9, 20069

28 States - Pending or Passed Pedigree Legislation 28 States - Pending or Passed Pedigree Legislation

Disclaimer: This map summarizes the states who have passed or introduced pedigree legislation. This map is not intended to be legal or regulatory advice on pedigree legislation.

Page 10: Product Pedigree

Pharmacy Purchasing Outlook Networking Conference August 9, 200610

Pedigree OverviewPedigree Overview

Objective:

To ensure a safe and secure supply chain.

Electronic pedigree provides efficient and paperless technology to achieve this.

Page 11: Product Pedigree

Pharmacy Purchasing Outlook Networking Conference August 9, 200611

Pedigree OverviewPedigree Overview

TERM DEFINITION

Pharmaceutical Pedigree

A record of a drug's chain of custody, from the point of manufacture to the point of dispensing.

E-pedigree Electronic pedigree track and trace (chain of custody) information on product information.

RFID Technology

Radio Frequency Identification using electronic product code (EPC).

Page 12: Product Pedigree

Pharmacy Purchasing Outlook Networking Conference August 9, 200612

Pedigree OverviewPedigree Overview

Strategic Benefits

•Counterfeit prevention

•Recall precision

•Brand value protection

Long-term Operational Benefits

• Faster, more accurate shipping and receiving

• Potential labor savings and inventory costs

• Expedited Returns processing

• Compliance with Prescription Drug Marketing Act (PDMA) and State requirements

Page 13: Product Pedigree

Radio Frequency Identification (RFID)Radio Frequency Identification (RFID)

Page 14: Product Pedigree

Pharmacy Purchasing Outlook Networking Conference August 9, 200614

RFID Gen2 Chip – Available Fall 2005RFID Gen2 Chip – Available Fall 2005

Page 15: Product Pedigree

Pharmacy Purchasing Outlook Networking Conference August 9, 200615

Gen2 Chip has 48,000 TransistorsGen2 Chip has 48,000 Transistors

Page 16: Product Pedigree

Pharmacy Purchasing Outlook Networking Conference August 9, 200616

RFID Tag and TerminologyRFID Tag and Terminology

RFID Tag

IC – “Chip”

Page 17: Product Pedigree

Pharmacy Purchasing Outlook Networking Conference August 9, 200617

RFID Tag and TerminologyRFID Tag and Terminology

TERM DEFINITION

TagA microchip attached to an antenna. The tag draws energy from an electromagnetic field created by the reader.

Reader Communicates with RFID tags and passes information in digital form to a computer system.

EPCElectronic Product Code is the coding standard used to identify an item. Similar to UPC code with the addition of serialization.

Page 18: Product Pedigree

Pharmacy Purchasing Outlook Networking Conference August 9, 200618

RFID vs. Bar codeRFID vs. Bar code

Barcode

RFID

Data Matrix 2D

Page 19: Product Pedigree

Pilot Projects2002-2006Pilot Projects2002-2006

Page 20: Product Pedigree

Pharmacy Purchasing Outlook Networking Conference August 9, 200620

Manufacturers Wholesalers Retailers

Regulatory & Trade

Program Management

RFID Evaluation - Jumpstart Project

Page 21: Product Pedigree

Pharmacy Purchasing Outlook Networking Conference August 9, 200621

• Regulatory Compliance • Product Security• Consumer Safety• Theft / Shrink Management

Safe & Secure Supply Chain

Reverse Logistics

Operational Efficiencies

• Expiration Dating Management• Lot & Batch Tracking• Returns Management• Recall Expediting

• Shipping Accuracy• Receiving Accuracy• Operational Productivity

Category Issues

Business Scenarios Approach

Validate Benefits

Page 22: Product Pedigree

Pharmacy Purchasing Outlook Networking Conference August 9, 200622

On TrackOn Track

Mission Statement:

Drive towards a safe and secure supply chain while increasing cost efficiency and the quality of health care through pharmaceutical serialization strategies.

Page 23: Product Pedigree

Pharmacy Purchasing Outlook Networking Conference August 9, 200623

On Track ParticipantsOn Track Participants

Manufacturer Partners

GlaxoSmithKline

Novartis

Pfizer

Purdue

Roche

Retailer Partners

Rite AidTargetWalgreensWal-Mart

Wholesale Distributors

Cardinal Health McKesson

Page 24: Product Pedigree

Pharmacy Purchasing Outlook Networking Conference August 9, 200624

On Track is an Opportunity to…On Track is an Opportunity to…

• Bring together trading partners and create a living laboratory across the supply chain to advance product safety, item serialization, and the quality of healthcare

• Leverage the learnings and momentum of industry leading companies to reduce costs and development time

• Gain real-world experience with product serialization in a technology-agnostic environment

Page 25: Product Pedigree

Pharmacy Purchasing Outlook Networking Conference August 9, 200625

On Track is an Opportunity to…On Track is an Opportunity to…

• Leverage learnings into practical commercial serialization installations

• Provide fact-based information to the membership, the industry, the technology community and policy makers

Page 26: Product Pedigree

Pharmacy Purchasing Outlook Networking Conference August 9, 200626

Challenges for Potential SolutionsChallenges for Potential Solutions

Competing electronic technologies • Various primary electronic tags i.e. 2D bar codes (line-of-sight)• Non-Standard tags• Bar code vs. RFID (backwards track)

Manufacturers Serializing all Rx products

States requiring different data elements

Data Sharing (Peer to Peer vs. Shared Network)

Technology and standards continue to evolve

Adoption time across industry

Page 27: Product Pedigree

Pharmacy Purchasing Outlook Networking Conference August 9, 200627

RFID Activity and Future ConsiderationsRFID Activity and Future Considerations

EPCglobal is the standards setting body for RFID/EPC

Industry segments work with EPCglobal Business Action Groups• Healthcare & Life Sciences is the business action group for

pharmaceuticals and medical devices

Generation 2 Tags• Became available in fall of 2005• Superior reads• Superior penetration into the case/pallet• Encryption• Tag kill feature

Page 28: Product Pedigree

Pharmacy Purchasing Outlook Networking Conference August 9, 200628

Considerations for PharmacyConsiderations for Pharmacy

What is happening in your state on pedigree?

• Is there a way for you to influence the legislation or regulations to achieve the goal of improved patient safety?

Page 29: Product Pedigree

Pharmacy Purchasing Outlook Networking Conference August 9, 200629

Considerations for PharmacyConsiderations for Pharmacy

How will you store and provide pedigree information, upon request?

Page 30: Product Pedigree

Pharmacy Purchasing Outlook Networking Conference August 9, 200630

Considerations for PharmacyConsiderations for Pharmacy

Does the PDMA final rule impact your pharmacy operation?

Page 31: Product Pedigree

Pharmacy Purchasing Outlook Networking Conference August 9, 200631

Considerations for PharmacyConsiderations for Pharmacy

Are you aware of the most commonly counterfeited items?

• National Association of Boards of Pharmacy (NABP®) lists of 34 specified list of susceptible products.

Page 32: Product Pedigree

Pharmacy Purchasing Outlook Networking Conference August 9, 200632

National Specified List of Susceptible Products National Specified List of Susceptible Products

Bextra (Valdecoxib) Celebrex (Celecoxib) Combivir (lamivudine/zidovudine) Crixivan (indinavir) Diflucan (fluconazole) Epivir (lamivudine) Epogen (epoetin alfa) Gamimune (globulin, immune) Gammagard (globulin, immune) Immune globuin Lamisil (terbinafine) Lipitor (atorvastatin) Lupron (leuprolide) Neupogen (filgrastim) Nutropin AQ (somatropin, E-coli

derived) Panglobulin (globulin, immune) Procrit (epoetin alfa) Retrovir (zidovudine)

Risperdal (risperidone) Rocephin (ceftriaxone) Serostim (somatropin, mannalian

derived) Sustiva (efavirenz) Trizivir

(abacavir/lamivudine/zidovudine) Venoglobulin (globulin, immune) Viagra (sildenafil) Videx (didanosine) Viracept (nelfinavir) Viramune (nevirapine) Zerit (stavudine) Ziagen (abacavir) Zocor (simvastatin) Zofran (ondansetron) Zoladex (goserelin) Zyprexa (olanzapine)

National Association of Boards of Pharmacy, 2004

Page 33: Product Pedigree

Questions?Questions?