HDMA COMMENDS CALIFORNIA BOARD OF PHARMACY DECISION
FOR NECESSARY TIME TO DEVELOP TECHNOLOGY SOLUTIONS THAT PROVIDE TRUE SAFETY AND VALUE FOR PATIENTS

San Diego, CA – March 25, 2008 – The Healthcare Distribution Management Association (HDMA) commends the California Board of Pharmacy’s decision today to extend the date for implementing the state’s pedigree requirements to January 1, 2011. This extension will help ensure continued patient access to medicines in California while the industry works together to further develop and implement track-and-trace technologies, in compliance with the state’s unprecedented state pedigree requirements.

“HDMA and our healthcare distributor members believe the California Board of Pharmacy took a necessary action today to preserve patient safety, value and access to medicines,” said John M. Gray, HDMA President and CEO.  “We share the Board’s view that technologies that track and trace individual units of medication from the beginning to the end of the supply chain hold the most promise for deterring criminal counterfeiters and promoting patient safety. Our unique position at the center of the supply chain necessitates that we deploy these systems in a coordinated and consistent way with our suppliers and our customers. While progress is being made, our experiences in pilot and testing programs have shown that the majority of the supply chain needs additional time to further develop and implement these technologies.”

California’s first-of-its-kind law requires that each prescription medicine be uniquely identified and electronically tracked by all segments of the healthcare supply chain, including manufacturers, distributors and pharmacies or healthcare providers. Information that must be tracked include the name of the prescription medicine, the dosage, the container size, the number of containers, the product lot or control number, the names and addresses of each company that bought and sold the medicine, the dates of all previous sales and shipping information.  Neither Federal law nor that of any other state requires tracking of prescription medicine at this unique level.

Today’s Board of Pharmacy decision extends the implementation date for the California requirements to allow critical time for the U.S. Food and Drug Administration and the industry to develop track-and-trace standards, and for supply chain partners to conduct essential testing and expand current technology pilots.

“HDMA for many years has been a strong advocate for track-and-trace technologies in healthcare, and we will continue to work with our supply chain partners and the Board of Pharmacy to ensure that systems in California are consistent, compatible and able to achieve the safety benefits envisioned by the state,” continued Gray. “HDMA’s member companies have taken the lead, investing considerable time and resources to explore technology solutions, design systems and initiate pilot projects with manufacturers, pharmacies, hospitals and other providers. We look forward to continuing this work with our other supply chain partners to implement track-and-trace technologies in California.”

HDMA has taken a strong stand to combat criminal counterfeiting, and supports the California pedigree requirement to further improve supply chain security and patient safety. The pedigree provisions, however, are just one part of a comprehensive anti-counterfeiting strategy that must involve manufacturers, distributors and pharmacies. To that end, HDMA and the nation’s primary healthcare distributors strongly support stricter licensing standards; tougher regulation, stronger law enforcement and harsher criminal penalties for the crime of counterfeiting medicine; current and emerging track-and-trace technologies; and the development of new research and innovation in the supply chain.

HDMA has worked steadily with the California Board of Pharmacy and supply chain partners to initiate and explore case studies to enhance the safety and efficiency of the nation’s prescription medicine supply. HDMA and its members have initiated industry working groups, new research on Data Management and Data Sharing in healthcare and the development of new technical guidelines for California. Additionally, HDMA and its member companies work daily with all links in the supply chain, federal and state regulatory authorities, law enforcement, the National Boards of Pharmacy and technology companies to advance continuous improvements in policies and business processes.

About HDMA
The Healthcare Distribution Management Association (HDMA) is the national association representing primary, full-service healthcare distributors. Each business day, the member companies of HDMA are responsible for ensuring that more than eight million prescription medicines and healthcare products are safely delivered to 145,000 pharmacies, hospitals, nursing homes, physician offices, clinics, government and other providers in all 50 states. This essential public health function is provided with tremendous efficiency, saving the nation’s healthcare system nearly $32 billion each year. HDMA and its members are the vital link in the healthcare system, working daily to provide value, remove costs and develop innovative solutions to deliver care safely and effectively.