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8 Myths That Can Derail Your e-Pedigree Traceability Project

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    8 Myths & Lessons Learned:Serialization & e-Pedigree

    Presented by: Michael Stewart

    Track & Trace Projects

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    Seria lization & e-Pedigree

    Agenda

    Pha rm Tec h

    8 Myths or Lessons Learned

    Opportunities

    Next Steps Q&A

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    Esta b lished in 1995

    FDA regula ted industry foc us

    Pharmac eutica l, M ed ic al Device & Biote c h

    Hea d q uartered in suburb a n Chic a go , IL

    Emp loyee ow ned

    Ac c ess to 100+ resources na tionw id e

    Av erage e xp erience:

    Projec t M a nage rs 10 yea rs

    Assoc ia tes 6 yea rs

    ASQ Certified Qu a lity Aud itors Certified Sup p ly Cha in Professiona ls (CSCP)

    Qu a lity Eng ineers IT Personne l

    PharmTec h Overview

    People

    Background

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    PharmTec h

    ROI

    Trac eabilitySyste m s

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    Trac k & Trac e Projec tsPha rmTec h has been working w ith lea d ing pha rmac eut ica l manufa c turers sinc e theint roduc tion of the Ca lifornia leg isla tion and ha s been inv olved in p rojec ts suc h a s:

    Ev a lua ting solutions p rov iders

    Seria lized da ta sha re and systems interop erab ility

    Sta nd ards imp lementa tion (GS1 sta nd ards)

    Pilot ing for seria lized p roduc t and trades

    Mapp ing current & future sta te p roc esses

    Long -range p lanning & Impac t ana lysis

    Sup p ly c ha in integ ration

    Rev ising strategy in response to leg isla tion and ind ustry shifts

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    TERMS & LEGISLATION

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    Trac eability Defined

    Trac eability is the ab ility to TRACK FORWARD, (item levelserialized produc t), the m ov em ent throug h spe c ified stag e(s) o f

    the extend ed sup ply cha in and TRACE BACKWARDS the histo ry,applic ation or loc ation o f tha t whic h is under c onsideration

    GS1 GTSH 1.0.0 Feb-2009

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    9

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    California

    Serialization & e-PedigreeItem leve l seria lization, sm allest distribute d unit

    Elec tronic pedigree , passed in interop erable fo rm at for eac h

    transaction of ownership change

    50% of a m anufa c turers produc ts by Jan. 1, 2015100% of a m anufa c turers produc ts by Jan. 1, 2016

    Wholesalers and re-pa c kagers must ac c ep t and forwardproduc ts w ith e -Pedigree by July 1, 2016

    Pharm ac y and pha rm ac y wa rehouses m ust ac c ep t and p asse-Pedigree by July 1, 2016

    Non Com plianc e?Civ il fines, injunc tions and / or c rimina l p rosec ut ion

    Fines up to $5,000 PER OCCURRENCE*

    *Eac h sa leab le unit is co nsidered an o cc urrence.

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    8 MYTHS & LESSONSLEARNED

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    Lesson:

    Cross func tiona l, ho listic v iew

    Myth #1 Its a (fill in the b lank) Projec t

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    Lesson: Don t p ic k a solution until you know the p rob lem.

    Choose stra teg y before tac tic .

    Myth #2 Pic k a c ard, any c ard

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    Could vs. Should

    Over-stretched sta ff

    Time, tra ining and temperament Ramp up time vs Next Step

    Myth #3 Internalize strategy development projec ts

    Lesson:Leverag e industry expe rienc e and knowledg e

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    3 Phase Trac eability Readiness

    Strat eg y

    Planning

    Implementation

    Gap Analysis

    Process Mapping

    Business Process Analysis

    Current State/Future State Evaluation

    Review Commercial Relationships

    Strategic Impact Analysis

    Cost-Benefit Analysis

    Business Value Propositions

    Traceability Architecture Development

    Strategic Solutions

    Systems Recommendations

    Solutions Provider Analysis

    User Requirements

    Functional Requirements

    Long Term Planning & Forecasting

    Solutions Provider Selection

    Project Management

    GS1 Standards Conversion

    Internal Test & ValidationTrading Partner Connection

    Piloting

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    Lesson:

    Beg in w ith the end in mind. You w ill get the system you p lan for.

    Myth #4We just need to get c ompliant,then well find value.

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    Real World : Real Value

    With inc reasing c osts o f drug de velopm ent, find ing ways to b oost m arket shareof existing brande d drugs whic h have gone o ff pa tent w as of prim e c onc ern, as

    brand ed drugs hav e highe r prem ium tha n c om pe ting g ene ric s.

    Challenge: Flat sa les and generic equiva lents Current system too c ostly. Need seria lization c om patib ility

    Scope of Work: System rep lac em ent Item leve l seria lization Identify business value

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    Real World: Real Value

    Results:Seria lization m itigated future regulatory c onc erns

    700 Clinic Pilo t

    Authentication achieved

    Autom ated softw are for d ispenser,Direc t b illing to Med ic areInventory fulfillm ent

    Patient Sc he dulingReduc ed c ustom er serv ic e staff 40%

    3% inc rease in overa ll m arket sha re

    Extensib le to othe r produc ts and div isions

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    Lesson:

    Dev elop a stra tegic business p lan

    Understa nd c ost, imp act a nd w orkflow c hanges effec ted

    Stra tegy to full implementation 6months-3 yea rs

    Myth #5 Time is on my side

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    Myth # 6 Virtual Manufac turer

    My timeline is shorter.

    Less time? Mayb e.No owne rship of line s to seria lize.

    Contingencies: Are the CMOs/ Pac kag ers on your tim eline? When w ill the y be ready to p ilot? Test? Integ rate? What so lution w ill ea c h CMO go w ith? Who is responsible c ontrac tua lly for seria lization? How do you want to rec eive the serialized prod uc t d ata ?

    How do the y wa nt to send the serialized prod uc t da ta? (All of them ?) How im portant is your business to the m ? Them to you? Are they w illing to be guide d by your c om pa nyi, or do you have to ac c ep t

    their solution? Ca n yo ur system s seam lessly integrate w ith 40+ tec hno log y system s

    Has yo ur c omp any c onducted aTrac k & Trac e Readiness Ana lysis?

    Yes

    NoUnsure

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    Wa iting onCa lifornia de laying a 3rd t ime

    Universa l st and ards

    FDA guidelines

    Technology

    Big pha rma

    TPCM/ TPCP

    A w hit e unicorn

    Lesson:

    The ac tiv ities from stra tegic business planning are evergreen.

    Oppo rtunities are found when you are looking for them .

    Myth #7We need more c larity on

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    Identify new value in projec ts

    ReceiveIngredients

    BulkDrug

    Proc essingPackaging

    DistributionCenter

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    Reduc e Days on Hand Inventory

    Challenge:Nee d to red uc e Days on Hand (DOH) costsassoc iated w ith exc essive inv ento ry in the wronglocations.

    Business Value:Nea r rea l tim e inte rna l view of ingredients and produc t in p rogress andhistoric al d ata

    Monitoring of key proc ess c hanges as they oc c ur, exped iting thec onfirm ation of the ena c ted im prov em ents

    Red uc tion in site spe c ific invento ry to m atc h prod uc tion level de m and

    Decrease in manufacturing times and reduction in warehousing space

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    Lesson:Id entify and quantify the non-com pliance benefits

    Insta lling a business system, not a compliance p ro jec t

    Myth #8 Leadership wont fundthe projec t until they have to

    "In a wo rld w here outc om es c ount for ev erything, its notm olecules that c rea te value but, rathe r, the ability tointegrate d ata , p roduc ts and serv ices in a c oherentbusiness o ffe ring .

    - Pw C, Pha rma 2020: Sup p lying t he Fut ure

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    Immediate ROI OpportunitiesAsset V isib ility, Tracking & Utiliza tion

    Issue Resolut ion and Opportunities

    Rea l Time Response

    e-Ped ig ree & A uthentica tion Cap ture

    Lev erage Captured Data for Improv ements in;Rev enue Ga ins in Sa les & Ma rketingInv entory Cont rolCyc le time reduc tions

    Log ist icsSeria lized return & cha rgeb acksSpeed import/ export ap prova lsSup p ly Cha in Q AHuman workflow mana gement

    Recall Management

    Ident ifica tion of Div ersion & Counterfeiting

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    Improved AdherenceChallenge:Ma nufa c turer losing o pportunities in a self-injec tab le b etw een Physic ianRec om m endation & Dec ision Day (b y pa tient) as well as the tim e linebetween Prior Autho rization & Bene fit Ve rific ation.

    Physician Rec ommendat ion

    Decision

    Day Patient

    PriorAuthorization Insuranc e

    Denial

    BenefitVerification Approval

    Delivery Adherence

    30-60 Day Cyc le

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    Improved Adherence

    Business Value Highlights;-Provided w eb ba sed educ at ion and financ ial assist anc e t o pat ient t o acc elerat e Decision Day choice

    -Integ rated w it h EHR s and Third Party Providers t o rema in HIPAA c omp liant

    -Op t -in at c linic level by pa t ient s for ma nufac t urer provided ed uca t ion, t hird pa rt y ma rket ing and pre-popula t ed benefit s forms for benefits.

    -Dec ision Day t o Prior A ut horizat ion goes from a n end less loop t o 20 minut es rat her t ha n 1-2 mont hs.

    -Aut omated Prior Aut horiza tion & Benefit Verifica t ion p rocess reduc ing Dec line t o PA Sub mission t o Approva l30-60 da ys t o 72 hours.

    -Increased c linic and pa t ient a dherence.

    Physician Recommendation

    Decision

    Day Patient

    PriorAuthorization Insuran ce

    Denial

    BenefitVerification App rov al

    Delivery Adherence

    4-6 Day Cyc le

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    Lesson:

    You do nt know what you don t know

    Prop er strategic planning and alloc ating eno ugh time for

    a full p ilot is c ritic a l

    Myth #8 Piloting is a formality-Plug & Play

    Tem porary system s Volume c onsiderations Data share w ith trading partners Exc ep tion ha ndling

    Line jam s Lab el c hange s Interna l data integ rity Integration o f third parties Rec eipt and Sending of serialized data

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    Traceability is new in pharma (even to the p roviders)

    -You don t know w hat you d on t know. Use our learning curve

    Technology interoperab ility a nd Data share

    Ma gnitude of work

    -GS1 St and ardiza t ion (GTINs, GLNs) -Workflow p rocess cha ng es

    -Business Rules -Commerc ial Rela t ionships

    -Imp act : Cost , Process, Fac ilities -Pilot t est ing

    -Trad ing pa rt ner int eg ra t ion -Excep t ion rep orting

    Regulatory deadline

    -36 months

    Availab ility of ta lent

    -Limit ed # of resources w it h experienc e

    Identify business value/ ROI in ad vance to capture It

    Why Start Today

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    Next Steps

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    Questions? Need More Information?

    Mic hael Stewart

    Cell (815) 403-8425

    Offic e (847) 281-8924

    m stew art@pharm tec hinc .com


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