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1. Current and Emerging Board of Pharmacy IssuesAmerican Society for Automation in Pharmacy2008 Annual Industry & Technology Issues ConferenceJanuary 26, 2008
Eleni Z. Anagnostiadis, RPh, Board Services Director
National Association of Boards of Pharmacy
2. NABP – Who Are We? The National Association of Boards of Pharmacy® (NABP®) is the international association for all jurisdictions that regulate pharmacy practice in the United States, District of Columbia, Guam, Puerto Rico, Virgin Islands, New Zealand, eight Canadian provinces, two Australian states, and South Africa.
Mission: To assist the boards of pharmacy in protecting the public health.
3. Road Map Scope of Drug Counterfeiting
Internet Pharmacy
Wholesale Drug Distributors
Durable Medical Equipment Accreditation Requirement
Medication Errors and Peer Review
Pseudoephedrine Regulation
4. The Scope of the Problem Proliferation of Web sites offering Rx for lifestyle and popular drugs
Counterfeit Drugs in the US Drug Distribution System
5. What is a Counterfeit Drug? US Food, Drug, and Cosmetic Act:
“ [A] drug which, or the container or labeling of which, without authorization, bears the trademark, trade name, or other identifying mark…of a drug manufacturer, processor…or distributor other than the person…who in fact manufactured, processed…or distributed such drug and which thereby falsely purports or is represented to be the product of…. such other drug manufacturer, processor…or distributor.”
The federal Food, Drug and Cosmetic Act contains an explicit and comprehensive definition of what a counterfeit drug is and the Model Rules have also adopted this definition as well.
The federal Food, Drug and Cosmetic Act contains an explicit and comprehensive definition of what a counterfeit drug is and the Model Rules have also adopted this definition as well.
6. Counterfeit Categories* Fake Packaging, Correct Quantity of Correct Ingredient (Clone)
Fake Packaging, Wrong Ingredient
Fake Packaging, No Active Ingredient
Fake Packaging, Incorrect Quantity of Correct Ingredient
Genuine Packaging, Wrong Ingredient
Genuine Packaging, No Ingredient
Genuine Packaging, Incorrect Quantity of Correct Ingredient
WHO also has a classification system for counterfeit drugs
I included this classification system primarily to keeps us mindful of how counterfeit drugs may present themselves; it keep us vigilant and cognizant of potential counterfeiting schemes.WHO also has a classification system for counterfeit drugs
I included this classification system primarily to keeps us mindful of how counterfeit drugs may present themselves; it keep us vigilant and cognizant of potential counterfeiting schemes.
7. Prevalence of Drug Counterfeiting According to the World Health Organization (WHO):
~ Industrialized Countries: Around 1%
~ Developing Countries: Over 10%
Estimates
The US based Centre for Medicines in the Public Interest predicts that counterfeit drug sales will reach US$ 75 billion globally in 2010, an increase of more than 90% from 2005.
Although precise and detailed data on counterfeit medicines is difficult to obtain, estimates range from around 1% of sales in developed countries to over 10% in developing countries, depending on the geographical area. That range takes into consideration both regional disparities in the presence of counterfeits, and specific global market value shares. Apart from the huge differences between regions, variations can also be dramatic within countries, i.e. city versus rural areas, city versus city.
Currently, the sources of information available include reports from non-governmental organizations, pharmaceutical companies, national drug regulatory and enforcement authorities, ad hoc studies conducted on specific geographical areas, and occasional surveys.
Counterfeiting is greatest in those regions where the regulatory and legal oversight is weakest.
Most industrialized countries with effective regulatory systems and market control (e.g. USA, most of EU, Australia, Canada, Japan, New Zealand) have a low proportion, i.e. less than 1% of market value
Many countries in Africa and parts of Asia and Latin America have areas where more that 30% of the medicines on sale can be counterfeit, while other developing markets have less than 10%; overall, a reasonable range is between 10% and 30%
Many of the former Soviet republics have a proportion of counterfeit medicines which is above 20% of market value — this falls into the developing country range
Medicines purchased over the Internet from sites that conceal their physical address are counterfeit in over 50% of cases
.
Estimates
The US based Centre for Medicines in the Public Interest predicts that counterfeit drug sales will reach US$ 75 billion globally in 2010, an increase of more than 90% from 2005.
Although precise and detailed data on counterfeit medicines is difficult to obtain, estimates range from around 1% of sales in developed countries to over 10% in developing countries, depending on the geographical area. That range takes into consideration both regional disparities in the presence of counterfeits, and specific global market value shares. Apart from the huge differences between regions, variations can also be dramatic within countries, i.e. city versus rural areas, city versus city.
Currently, the sources of information available include reports from non-governmental organizations, pharmaceutical companies, national drug regulatory and enforcement authorities, ad hoc studies conducted on specific geographical areas, and occasional surveys.
Counterfeiting is greatest in those regions where the regulatory and legal oversight is weakest.
Most industrialized countries with effective regulatory systems and market control (e.g. USA, most of EU, Australia, Canada, Japan, New Zealand) have a low proportion, i.e. less than 1% of market value
Many countries in Africa and parts of Asia and Latin America have areas where more that 30% of the medicines on sale can be counterfeit, while other developing markets have less than 10%; overall, a reasonable range is between 10% and 30%
Many of the former Soviet republics have a proportion of counterfeit medicines which is above 20% of market value — this falls into the developing country range
Medicines purchased over the Internet from sites that conceal their physical address are counterfeit in over 50% of cases
.
8. Prevalence of Drug Counterfeiting Industrialized countries with effective regulatory systems (eg, USA, most of EU, Australia, Canada, Japan, New Zealand) – less than 1%
Many countries in Africa and parts of Asia and Latin America – between 10% and 30%
Many of the former Soviet republics – above 20%
Medicines purchased over the Internet from sites that conceal their physical address are counterfeit in over 50% of cases
Estimates
The US based Centre for Medicines in the Public Interest predicts that counterfeit drug sales will reach US$ 75 billion globally in 2010, an increase of more than 90% from 2005.
Although precise and detailed data on counterfeit medicines is difficult to obtain, estimates range from around 1% of sales in developed countries to over 10% in developing countries, depending on the geographical area. That range takes into consideration both regional disparities in the presence of counterfeits, and specific global market value shares. Apart from the huge differences between regions, variations can also be dramatic within countries, i.e. city versus rural areas, city versus city.
Currently, the sources of information available include reports from non-governmental organizations, pharmaceutical companies, national drug regulatory and enforcement authorities, ad hoc studies conducted on specific geographical areas, and occasional surveys.
Counterfeiting is greatest in those regions where the regulatory and legal oversight is weakest.
Most industrialized countries with effective regulatory systems and market control (e.g. USA, most of EU, Australia, Canada, Japan, New Zealand) have a low proportion, i.e. less than 1% of market value
Many countries in Africa and parts of Asia and Latin America have areas where more that 30% of the medicines on sale can be counterfeit, while other developing markets have less than 10%; overall, a reasonable range is between 10% and 30%
Many of the former Soviet republics have a proportion of counterfeit medicines which is above 20% of market value — this falls into the developing country range
Medicines purchased over the Internet from sites that conceal their physical address are counterfeit in over 50% of cases
.
Estimates
The US based Centre for Medicines in the Public Interest predicts that counterfeit drug sales will reach US$ 75 billion globally in 2010, an increase of more than 90% from 2005.
Although precise and detailed data on counterfeit medicines is difficult to obtain, estimates range from around 1% of sales in developed countries to over 10% in developing countries, depending on the geographical area. That range takes into consideration both regional disparities in the presence of counterfeits, and specific global market value shares. Apart from the huge differences between regions, variations can also be dramatic within countries, i.e. city versus rural areas, city versus city.
Currently, the sources of information available include reports from non-governmental organizations, pharmaceutical companies, national drug regulatory and enforcement authorities, ad hoc studies conducted on specific geographical areas, and occasional surveys.
Counterfeiting is greatest in those regions where the regulatory and legal oversight is weakest.
Most industrialized countries with effective regulatory systems and market control (e.g. USA, most of EU, Australia, Canada, Japan, New Zealand) have a low proportion, i.e. less than 1% of market value
Many countries in Africa and parts of Asia and Latin America have areas where more that 30% of the medicines on sale can be counterfeit, while other developing markets have less than 10%; overall, a reasonable range is between 10% and 30%
Many of the former Soviet republics have a proportion of counterfeit medicines which is above 20% of market value — this falls into the developing country range
Medicines purchased over the Internet from sites that conceal their physical address are counterfeit in over 50% of cases
.
9. A Growing Problem “Trade in counterfeits is extremely lucrative, thus making it more attractive to criminal networks. A report released by the Centre for Medicines in the Public Interest, in the United States, projects counterfeit drug sales to reach US $75 billion in 2010, a 92% increase from 2005.” WHO: Counterfeit medicines, “The Silent Epidemic” Press release, February 2006
10. NABP Findings Selling prescription meds without a valid prescription:
Without any prescription
Online consult; no physical exam
Online consult + “physical assessment” by non-physician
Selling unapproved medications:
Example: unapproved generic versions of brand medications
Counterfeit medications
11. NABP Findings Controlled Substances & Isotretinoin Buys
December 2003 to January 2004
Purchased 8 drugs from 5 suspicious sites, including Xanax®, codeine, Valium®, injectable testosterone
Site shipped isotretinoin to US, despite contrary claim
All drugs labeled in foreign language
Limited USP testing: some testosterone was subpotent
12. NABP Findings Controlled Substances & Isotretinoin Buys
Testosterone purchase:
Thai manufacturer
Supplier based in Republic of Seychelles
Web site registered in Slovenia
Payment processed in Quebec Canada
Package arrived with Greek stamps Seychelles (pronounced / ["say shells"] in English according to wikipedia Seychelles (pronounced / ["say shells"] in English according to wikipedia
13. Internet Pharmacy Canada’s first confirmed death from counterfeit drugs purchased over the Internet (March 2007)
British Columbia Coroner’s report – pills bought from a fake online pharmacy caused death of a Vancouver Island woman.
Drugs contaminated with extremely high quantities of metal. Canada's first confirmed death from counterfeit drugs purchased over the Internet reinforces long-stated concerns of the Canadian Pharmacists Association (CPhA), the association states in a July 6, 2007 press release.
A British Columbia Coroner's report concludes that pills bought from a fake online pharmacy are to blame for the March death of a Vancouver Island woman.
Drugs were later determined to be contaminated with extremely high quantities of metal.
Canada's first confirmed death from counterfeit drugs purchased over the Internet reinforces long-stated concerns of the Canadian Pharmacists Association (CPhA), the association states in a July 6, 2007 press release.
A British Columbia Coroner's report concludes that pills bought from a fake online pharmacy are to blame for the March death of a Vancouver Island woman.
Drugs were later determined to be contaminated with extremely high quantities of metal.
14. DEA – Operation Raw Deal 11.4 million steroid dosage units seized as part of Operation Raw Deal – September 27, 2007
DEA – Operation Raw Deal
Largest steroid enforcement action in US history
Seized 11.4 million steroid dosage units, 242 kg raw steroid powder from China
Anabolic steroids, human growth hormone
Illegal internet operations
DEA – Operation Raw Deal
Largest steroid enforcement action in US history
Seized 11.4 million steroid dosage units, 242 kg raw steroid powder from China
Anabolic steroids, human growth hormone
Illegal internet operations
15. State Board of Pharmacy Efforts Internet Pharmacy
“Brick and mortar” Rxs supplying Internet site(s)
Florida-based Internet Rx
CO pharmacy dispensed Tamiflu® and tramadol based on online consultations
State: Action Taken
NC: Shut down several pharmacies dispensing drugs on behalf of pharmacy Web site
KY: Seized 163 shipments of hydrocodone tabs from unlicensed online Rx
CO: Pharmacy fined and licensure surrendered; RPh manager disciplined
Rx Depot – federal judge granted FDA request to close Rx Depot Nov 2003
In addition, many states have passed legislation or regulations to clearly define a “Dr.-Patient Relationship” and to impose limitations of what can occur with our a face-to-face Dr. visit. Rx Depot – federal judge granted FDA request to close Rx Depot Nov 2003
In addition, many states have passed legislation or regulations to clearly define a “Dr.-Patient Relationship” and to impose limitations of what can occur with our a face-to-face Dr. visit.
16. VIPPS Overview
Launched in 1999
Multi-group task force drafted standards
NOT industry regulated or maintained
Investigate and report rogue sites
Currently 15 VIPPS entities representing over 12,000 pharmacies
17. Road Map Scope of Drug Counterfeiting
Internet Pharmacy
Wholesale Drug Distributors
Durable Medical Equipment Accreditation Requirement
Medication Errors and Peer Review
Pseudoephedrine Regulation
18. FDA’s Counterfeit Drug Task Force Interim Report, October 2003
19. Regulators: Greatest Challenges Lack of jurisdiction
Little or no cooperation from some government officials
Difficulty identifying location/owner
Lack of resources
Funding
Staff
Consumer education
As you know, the average board has between 5 and 6 inspectors for potentially hundreds of wholesale distributors; and that would be fine if they only inspected wholesalers; they also inspect pharmacies, device distributors, medial oxygen distributors, etc.
As a result, wholesale distributors may not be routinely inspected.
Also the lack in relative uniformity of state regulations has resulted in some unscrupulous entities seeking licensure in states with less stringent licensure requirements.
As a result, NABP, under the direction of the boards, has taken great strides to address these regulatory challenges. Some solutions being:A. the Model Rules aimed at achieving uniformity in regulation andB. the VAWD Program and Clearinghouse to provide states with resources and a mechanism for convenient information sharing.
As you know, the average board has between 5 and 6 inspectors for potentially hundreds of wholesale distributors; and that would be fine if they only inspected wholesalers; they also inspect pharmacies, device distributors, medial oxygen distributors, etc.
As a result, wholesale distributors may not be routinely inspected.
Also the lack in relative uniformity of state regulations has resulted in some unscrupulous entities seeking licensure in states with less stringent licensure requirements.
As a result, NABP, under the direction of the boards, has taken great strides to address these regulatory challenges. Some solutions being:A. the Model Rules aimed at achieving uniformity in regulation andB. the VAWD Program and Clearinghouse to provide states with resources and a mechanism for convenient information sharing.
20. State Licensing of Wholesale Distributors State Boards of Pharmacy
Out-of-State Wholesale Distributors
NABP Model Rules for Licensure of Wholesale Distributors
PhRMA Pedigree Model
Stakeholder Meetings
Due to the PDMA….majority of regulatory responsibility falls to the State BOPs
One of the primary issues and reasons that counterfeiters are able to introduce counterfeit product into the legitimate distributions system is because of the inconsistent and sometimes frighteningly inadequate laws from state.
A wholesaler may be licensed in another state and want to do business in your state, but regulatory entity in your state has no real way of knowing or evaluating their state of domicile’s requirements….some wholesalers have NEVER been inspected.
At the request of the FDA and in response to the needs of our Member Boards, NABP has revised our Model Rules for licensure of wholesale distributors and developed an accreditation program and a clearinghouse for wholesalers to promote uniformity and standardization across the country.
3 Tiers of change….
Two phase pedigree system, the first phase of which provides a concept called the normal distribution channel. This is a system by which pedigrees are not required for wholesale distributions, as long as the product moves along a particular path while it is on its way to the patient. Meaning that the product would move from a Manufacturer ? Wholesaler ? Pharmacy ? Patient. A pedigree would not be required in this instance. However, if a product moved laterally to other wholesalers, a pedigree would be required. Think of it in terms of the product moving on a vertical plane….what this prevents is those lateral transactions that make the system susceptible to counterfeiting. This is the concept that has been widely endorsed and adopted across the country. Due to the PDMA….majority of regulatory responsibility falls to the State BOPs
One of the primary issues and reasons that counterfeiters are able to introduce counterfeit product into the legitimate distributions system is because of the inconsistent and sometimes frighteningly inadequate laws from state.
A wholesaler may be licensed in another state and want to do business in your state, but regulatory entity in your state has no real way of knowing or evaluating their state of domicile’s requirements….some wholesalers have NEVER been inspected.
At the request of the FDA and in response to the needs of our Member Boards, NABP has revised our Model Rules for licensure of wholesale distributors and developed an accreditation program and a clearinghouse for wholesalers to promote uniformity and standardization across the country.
3 Tiers of change….
Two phase pedigree system, the first phase of which provides a concept called the normal distribution channel. This is a system by which pedigrees are not required for wholesale distributions, as long as the product moves along a particular path while it is on its way to the patient. Meaning that the product would move from a Manufacturer ? Wholesaler ? Pharmacy ? Patient. A pedigree would not be required in this instance. However, if a product moved laterally to other wholesalers, a pedigree would be required. Think of it in terms of the product moving on a vertical plane….what this prevents is those lateral transactions that make the system susceptible to counterfeiting. This is the concept that has been widely endorsed and adopted across the country.
21. 2007 Wholesale Distributor Legislation State Activity Tracked 38 bills related to Wholesale Drug Distributors in 25 states
NABP’s involvement at state level
Provides history and education to the boards
Reviews legislation/regulations
Testifies, upon board request
22. Wholesale Distributor Enacted Legislation
Arizona
California
Colorado
Florida
Georgia
Idaho
Indiana
Illinois
Iowa*
Kansas
Maryland
Mississippi
Nebraska
Nevada
New Jersey
New Mexico*
North Dakota
Oklahoma
South Dakota
Texas*
Vermont
Virginia*
Wisconsin
Wyoming
23. Wholesale Distributor Regulations Arizona
Arkansas
Colorado
Delaware
Iowa
Missouri Nebraska
New Mexico
Oregon
Nevada
Virginia
Wyoming
24. FDA Amendments Act of 2007 Authorizes HHS Secretary to develop standards and identify and validate effective technology to secure drug supply chain
Consult with manufacturers, distributors, pharmacies, other supply chain stakeholders Bottom line: Language in PDUFA legislation that authorizes the FDA to establish standards for track and trace technology, but does not require that it be implemented in the supply chain.
· Language MAY set the stage for industry to take implement voluntarily.
Enacted a few weeks ago
Bottom line: Language in PDUFA legislation that authorizes the FDA to establish standards for track and trace technology, but does not require that it be implemented in the supply chain.
· Language MAY set the stage for industry to take implement voluntarily.
Enacted a few weeks ago
25. FDA Amendments Act of 2007 Requires HHS to establish a “standardized numerical identifier” to be applied at point of manufacturing (within 30 months)
Unclear if requirement for specific number
No explicit requirement to implement serialization
References “promising technology” but not prescriptive
RFID
Nanotechnology
Bottom line: Language in PDUFA legislation that authorizes the FDA to establish standards for track and trace technology, but does not require that it be implemented in the supply chain.
· Language MAY set the stage for industry to take implement voluntarily.
Enacted a few weeks ago
Bottom line: Language in PDUFA legislation that authorizes the FDA to establish standards for track and trace technology, but does not require that it be implemented in the supply chain.
· Language MAY set the stage for industry to take implement voluntarily.
Enacted a few weeks ago
26. NABP’s Model Rules:Three Tiers of Change More stringent licensure requirements
Pedigrees and establishment of track and trace electronic pedigree system
Increased criminal penalties to dissuade criminals from counterfeiting drug
Licensing Requirements
Designated Representative
Surety Bond Requirements
Criminal and Financial Background Checks
Ownership
Key Personnel
Designated Representatives
Pedigree Requirement
Phase 1: Pedigrees required for products that leave the “normal distribution channel”
Serves as a “stop-gap” measure
Phase 2: Pedigrees required from the point of manufacture, until final sale to the pharmacy
Standardized and large-scale implementation
No impact on safety or efficacy of product.
Criminal Penalties/Prohibited Acts
Establishes 14 different violations and corresponding Criminal Penalties
Establishes 18 Prohibited Acts
Licensing Requirements
Designated Representative
Surety Bond Requirements
Criminal and Financial Background Checks
Ownership
Key Personnel
Designated Representatives
Pedigree Requirement
Phase 1: Pedigrees required for products that leave the “normal distribution channel”
Serves as a “stop-gap” measure
Phase 2: Pedigrees required from the point of manufacture, until final sale to the pharmacy
Standardized and large-scale implementation
No impact on safety or efficacy of product.
Criminal Penalties/Prohibited Acts
Establishes 14 different violations and corresponding Criminal Penalties
Establishes 18 Prohibited Acts
27. VAWD Overview Accreditation of wholesale distributors
Launched in 2005
Multi-group task force drafted standards
NOT industry regulated or maintained
Currently 230 VAWD accredited wholesalers
28. Adoption of VAWD / AccreditationConcept since 2005
29. Road Map Scope of Drug Counterfeiting
Internet Pharmacy
Wholesale Drug Distributors
Durable Medical Equipment Accreditation Requirement
Medication Errors and Peer Review
Pseudoephedrine Regulation
30. History Medicare Modernization Act 2003
Secretary of Health and Human Services
Quality standards for DMEPOS suppliers
Independent accreditation organizations (AO)
Compliance with standards = accreditation
Accreditation = Medicare Part B reimbursement for DMEPOS items
31. Impact on Pharmacy DMEPOS Suppliers must be Accredited to competitively bid for and provide DMEPOS, Diabetes and Part B supplies and services for beneficiaries.
Suppliers from 10 Metropolitan Statistical Areas (MSAs) were required to obtain Accreditation by October 31, 2007.
Suppliers in 70 other MSAs will be required to obtain Accreditation in 2009 for second round of competitive bidding.
32. ALL Medicare Part B Suppliers must be accredited by a CMS-approved Accreditation body by September 30, 2009.
Impact on Pharmacy
33. NABP’s DMEPOS Accreditation Program NABP deemed an Accreditation Organization by CMS in November 2006
Launched in January 2007
DMEPOS Suppliers that possess a valid pharmacy permit
Accredited entities representing over 12,000 licensed pharmacies
34. Road Map Scope of Drug Counterfeiting
Internet Pharmacy
Wholesale Drug Distributors
Durable Medical Equipment Accreditation Requirement
Medication Errors and Peer Review
Pseudoephedrine Regulation
35. Medication Errors / Peer Review Regulatory bodies have few options for addressing medication errors
Most state laws require discipline but do not offer alternatives, such as peer review
14 state boards require continuous quality improvement (CQI) programs to monitor quality-related events
Peer Review
Evaluate errors to identify weaknesses in systems
Modify practices to prevent similar errors
Non-punitive
36. NABP Resolution #103-5-07: Medication Error Reporting Passed during 103rd Annual Meeting, May 2007
Whereas:
Institute of Medicine (IOM) report* recommends boards of pharmacy implement quality improvement initiatives related to community pharmacy practice
IOM report suggests that medication error reporting be promoted more aggressively
NABP and boards of pharmacy have endorsed reporting medication errors
* Preventing Medication Errors: Quality Chasm Series, 2006
37. NABP Resolution #103-5-07: Medication Error Reporting Therefore be it resolved:
NABP support the boards by encouraging and promoting the reporting of medication errors occurring in all pharmacy practice settings to reporting programs …
NABP review and revise, if necessary, the Model Act regarding implementation of CQI and peer review programs and best practice recommendations, in accordance with non-discovery provisions …
NABP request that ISMP or other groups study the creation of a standardized approach to conduct root cause or causative factor analysis for medication errors ...
38. Task Force on CQI, Peer Review, & Inspecting for Patient Safety NABP convened a Task Force in December 2007
Review Language in Model Act
Develop an implementation plan and educational program to assist states
Assess the need for a tool for the boards to evaluate pharmacies in the area of patient safety.
Task Force Results
February 2008
39. Road Map Scope of Drug Counterfeiting
Internet Pharmacy
Wholesale Drug Distributors
Durable Medical Equipment Accreditation Requirement
Medication Errors and Peer Review
Pseudoephedrine Regulation
40. Combat Methamphetamine Epidemic Act of 2005: Impact on Pharmacy Prior to selling PSE, retailers must check consumers’ ID and must keep a log book of all PSE transactions.
Retailers must store PSE behind the counter or in a locked cabinet.
Daily sales limit of 3.6 grams per purchaser, regardless of number of transactions.
All non-liquid forms of PSE must be packaged in blister packs, no more than 2 to a package. Products may also be packaged in unit-dose packets or pouches.
Persons distributing PSE must confirm identity of recipient before shipping through mail.
Retail Provisions became effective on September 30, 2006.
Other states have passed regulations, further implementing suspicious purchase reporting requirements. Retail Provisions became effective on September 30, 2006.
Other states have passed regulations, further implementing suspicious purchase reporting requirements.
41. Eleni Z. Anagnostiadis, RPh
Board Services Director
eanagnostiadis@nabp.net
Visit the NABP Web site at www.nabp.net
VIPPS Accreditation Program and Criteria
VAWD Accreditation Program and Criteria
DMEPOS Accreditation Program and Criteria