new eucerin introducing

6
monitoring (11 percent). Gross margins continued to decline as a percentage of sales from 24.9 percent in 1998 to 24 percent in 1999. In dollars, gross margins increased by 8.5 percent to $472,432, the highest ever recorded in the Digest. Net profit before taxes rose to 3.6 percent of sales, an increase from last year’s 3.1 percent. Total expenses declined as a percentage of sales from 21.8 percent to 20.4 percent. The number of prescriptions dispensed annually by the average independent grew to 47,428, an average of 152 prescriptions per day. The percentage of total prescriptions covered by Medicaid and other third parties rose to 73 percent from 71 percent last year. Gross margins on Medicaid prescrip- tions decreased from 19.5 percent to 15.2 percent and the gross margin on other third-party prescriptions dropped to a record low of 12.8 percent from 15.7 percent in the previous year. According to the 2000 NCPA- Pharmacia Digest report, independent community pharmacies reached a record of nearly $2 million in total sales per pharmacy in 1999. The percentage of independent pharmacies offering disease state specialty services also increased significantly during the year. Final figures from the Digest show that independent pharmacies again experi- enced double-digit sales growth in 1999, increasing 12.7 percent over the previous year to an average of $1.97 million. Total pharmacy sales have increased by more than 37 percent over the past three years, according to Digest figures. Prescription sales revenue also grew, accounting for 83 percent ($1.63 million) of total average sales, a 14.1 percent increase from the previous year and nearly 43 percent growth over three years. Other key findings from this year’s study: Independent community pharmacies continued to be leaders in providing disease management services. Pharmacies reported offering disease management services in the following areas: blood pressure monitoring (60 percent), diabetes training (50 percent), asthma training (37 percent), immunizations (21 percent), AIDS specialty services (10 percent), and anticoagulation Volume 1, Number 3 A quarterly update of industry-related news brought to you by D&K Healthcare Resources, Inc. ARTICLE INDEX ® Diabetes The impact of diabetes on the American healthcare system. — Page 2 Skin Cholesterol Test Targeting heart disease by identifying plaque in arteries. — Page 4 Abreva — Introduced by Smith Kline First OTC product approved for the treatment of cold sores and fever blisters. — Page 7 Worldwide Drug Delivery Market Growth Market slated to escalate over the next five years. — Page 9 Education Assistance New program developed by PharmMed Educational Services, Inc. to assist pharmacy school applicants. — Page 11 Independent Pharmacies Report Impressive Growth The NCPA Foundation is pleased to announce that the “Presidential Scholar- ship” program will be continued during the 2001-2002 academic year. All pharmacy students who are student members of NCPA are eligible to apply for a $2,000 scholarship for the 2001-2002 academic year. The student must be enrolled in an accredited U.S. school or college of pharmacy on a full-time basis during the 2001 fall term and the 2002 spring term. Children of NCPA Foundation Officers, NCPA Officers, or NCPA Executive Committee members are not eligible to participate in the program. Each applicant must complete an (continued on page 11) NCPA Foundation Presidential Scholarship MEN'S SHAVING Introducing Innovative and Exciting! Capture Your Share of the Growing Men's Grooming Market MOISTURIZING LOTION MEN'S CLEANSERS New Eucerin Daily Sun Defense The ultimate protection for sensitive skin Our revolutionary, super-antioxidant AGR is 10 times more effective than vitamin E in protecting sensitive skin like yours. So Eucerin Daily Sun Defense can even help prevent sun bumps and rashes. It has broad-spectrum UVA/UVB sunscreen. And its unique non-greasy formula absorbs so quickly, you'll be surprised at how light it feels. Plus Eucerin Daily Sun Defense is fragrance- free and gentle enough to use on kids. New Eucerin Daily Sun Defense. From the #1 dermatologist-recommended brand. Use it every day, all over. MEN'S AFTER SHAVE Beiersdorf launches Nivea For Men with $30m in Advertising! This newsletter is developed with the interests of our customers and employees in mind. To that end, we intend to make this publication as inform- ative as possible. However, we make no representation or warranty that the information contained within is accurate or complete. We welcome your feedback and comments, sent to us at: • fax—314-727-5759 • email—[email protected] • web—www.dkwd.com/partners WINTER 2001 EDITION

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Page 1: New Eucerin Introducing

monitoring (11 percent).Gross margins continued to decline

as a percentage of sales from 24.9 percentin 1998 to 24 percent in 1999. In dollars,gross margins increased by 8.5 percent to $472,432, the highest ever recorded in the Digest.

Net profit before taxes rose to 3.6percent of sales, an increase from lastyear’s 3.1 percent.

Total expenses declined as a percentageof sales from 21.8 percent to 20.4 percent.

The number of prescriptions dispensedannually by the average independent grewto 47,428, an average of 152 prescriptionsper day.

The percentage of total prescriptionscovered by Medicaid and other third partiesrose to 73 percent from 71 percent last year.

Gross margins on Medicaid prescrip-tions decreased from 19.5 percent to 15.2percent and the gross margin on otherthird-party prescriptions dropped to arecord low of 12.8 percent from 15.7percent in the previous year.

According to the 2000 NCPA-Pharmacia Digest report, independentcommunity pharmacies reached a recordof nearly $2 million in total sales perpharmacy in 1999. The percentage ofindependent pharmacies offering diseasestate specialty services also increasedsignificantly during the year.

Final figures from the Digest showthat independent pharmacies again experi-enced double-digit sales growth in 1999,increasing 12.7 percent over the previousyear to an average of $1.97 million. Totalpharmacy sales have increased by morethan 37 percent over the past three years,according to Digest figures.

Prescription sales revenue also grew,accounting for 83 percent ($1.63 million)of total average sales, a 14.1 percentincrease from the previous year andnearly 43 percent growth over three years.Other key findings from this year’s study:

Independent community pharmaciescontinued to be leaders in providingdisease management services. Pharmaciesreported offering disease managementservices in the following areas: bloodpressure monitoring (60 percent),diabetes training (50 percent), asthmatraining (37 percent), immunizations (21 percent), AIDS specialty services (10 percent), and anticoagulation

Volume 1, Number 3

A quarterly update of industry-related news brought to you by D&K Healthcare Resources, Inc.

ARTICLE INDEX

®

DiabetesThe impact of diabetes onthe American healthcaresystem. — Page 2

Skin Cholesterol TestTargeting heart disease byidentifying plaque in arteries.

— Page 4

Abreva — Introduced by Smith KlineFirst OTC product approvedfor the treatment of coldsores and fever blisters.

— Page 7

Worldwide Drug DeliveryMarket GrowthMarket slated to escalateover the next five years.

— Page 9

Education AssistanceNew program developed byPharmMed EducationalServices, Inc. to assistpharmacy school applicants.

— Page 11

Independent Pharmacies Report Impressive Growth

The NCPA Foundation is pleased toannounce that the “Presidential Scholar-ship” program will be continued during the2001-2002 academic year. All pharmacystudents who are student members ofNCPA are eligible to apply for a $2,000scholarship for the 2001-2002 academicyear. The student must be enrolled in anaccredited U.S. school or college ofpharmacy on a full-time basis during the2001 fall term and the 2002 spring term.Children of NCPA Foundation Officers,NCPA Officers, or NCPA ExecutiveCommittee members are not eligible toparticipate in the program.

Each applicant must complete an(continued on page 11)

NCPA Foundation Presidential Scholarship

MEN'S SHAVING

Introducing

Innovativeand Exciting!

Capture Your Share of theGrowingMen'sGroomingMarket

MOISTURIZING LOTION

MEN'S CLEANSERS

New EucerinDaily SunDefense

Theultimate

protectionfor

sensitiveskin

Our revolutionary, super-antioxidantAGR is 10 times more effective thanvitamin E in protecting sensitive skin likeyours. So Eucerin Daily Sun Defense caneven help prevent sun bumps andrashes.

It has broad-spectrum UVA/UVBsunscreen. And its unique non-greasyformula absorbs so quickly, you'll besurprised at how light it feels. PlusEucerin Daily Sun Defense is fragrance-free and gentle enough to use on kids.

New Eucerin Daily Sun Defense. Fromthe #1 dermatologist-recommendedbrand. Use it every day, all over.

MEN'S AFTER SHAVE

Beiersdorf launches Nivea For Menwith $30m in Advertising!

This newsletter is developed with theinterests of our customers and employees

in mind. To that end, we intend tomake this publication as inform-

ative as possible. However, wemake no representation or warranty

that the information contained within is accurate or complete.

We welcome your feedback andcomments, sent to us at:

• fax—314-727-5759• email—[email protected]• web—www.dkwd.com/partners

WINTER 2001 EDITION

Page 2: New Eucerin Introducing
Page 3: New Eucerin Introducing

Handheld Computing DeviceMarket Expanding

The market forhandheld computingdevices will exceed$2 billion inhealth-careindustry sales by2004 as morephysicians beginprescribing,checking medicalhistories, andordering lab testselectronicallyaccording to ananalysis by WR Hambrecht Co., aSan Francisco investment bankingfirm. The $2 billion projection doesnot include online advertising bydrug companies.

Abandoned On-Line Shopping Carts Costly

Analysts saythat abandonedshopping carts,filled and left unpurchased byconsumers, are amajor problem foronline retailers.According to BostonConsulting Group, itcould cost retailers as much as $16million this year. Analysts say themain reasons for consumers’ actionsare confusing or overly longinstructions, hidden costssuch as shipping fees, andthe lack of customersupport services.However, some sites havedeveloped successful strategies toprevent abandoned carts. Forexample, Amazon.com has simplifiedthe checkout process with its one-clicksetup, in which registered userscomplete an order in just one step.Vividence marketing expert BillDemas says that every e-commercesite should provide its customerswith a complete, up-front accounting

of costs, live computer support,shortened registration forms, and areal-time listing of their shoppingcarts contents. Strategies like these

have helped e-commerce firmssuch as Nexchange,which foundthat the rate of abandonedshopping carts atwebsites it had constructed was

well above the average. Thecompany installed features

including a prominentposting of its privacy policy

and real-time text-chat customerservice to boost the performance ofits sites. Since then, sales haveincreased, while the rate ofabandoned shopping carts has fallen by nearly 30 percent.

Americans Concerned AboutTransmitting Personal HealthInformation via Internet

According to a new Gallupsurvey commissioned byMedicAlert Foundation—mostAmericans are unwilling to storeor transmit personal health

information via the Internet.This is the first survey of

the general public—not just Internet users—andunderscores the growing

concerns about personalprivacy in America.

In the survey, 77 percent of all respondents said the

privacy of their personalhealth information is veryimportant, and 84 percentof all respondents said they

are concerned or somewhatconcerned that personal

health information might bemade available to others withouttheir consent. Only 7 percent of therespondents said they are verywilling to store or transmit personalhealth information via the Internet,and only 8 percent felt a websitecould be trusted with suchinformation.

STATESIDEPage 10 — TECHNOLOGY NEWS Page 3

Kansas Board of PharmacySusan Linn has been named

Executive Director of the KansasBoard of Pharmacy filling theposition vacated by LarryFrolic who resigned last spring.

Pharmacy Society ofWisconsin Advisory Council

Do you have an interest inthe treatment of arthritis andother related diseases? If so,consider representing PSW on a statewide advisory councilsponsored by the Wisconsinchapter of the Arthritis Founda-tion. As a member of this group,you will meet with other healthcare professionals on a quarterlybasis to work on implementationof an arthritis treatment actionplan. Send a statement of interestto the PSW office or email SusanKleppin at [email protected].

Missouri ComplianceReminders The following are compliancereminders from the MissouriState Board of Pharmacy:

• Advanced Practice Nurses are not authorized under statelaw to issue prescriptions forcontrolled substances. Thispertains to prescriptions thatoriginate from out-of-state as well.

• Prescriptions must be stored at the address assigned to thepharmacy permit.

• Prescription records can bestored in an area outside of theimmediate pharmacy as long asthe address is the same andthey are readily retrievable atthe time of inspection.

Iowa 2001 Educational EXPOThe Iowa Pharmacy Association

will be holding and EducationalExposition at the University ParkHoliday Inn, West Des Moines, Iowaon January 19-21, 2001. A total of16.5 hours of continuing educationcredit are being offered at the 2001Expo, with a possible12.5 hours of drugtherapy credit.

All educationalprogramming andthe Exhibit Hallwill be held at theUniversity ParkHoliday Inn, 50th &University Avenue,West Des Moines,Iowa, 50266, 515-223-1800.The IPA has reserved a block ofrooms for the event.

Among the education programsoffered are OSHA Training, CPRCertification and Recertification, Acute

The University of Mississippi

School of Pharmacy cordially invites

you to join us for The University

Campaign Celebration Weekend

April 27-29, 2001, on campus in

Oxford. More information will be

provided as the date draws closer;

however, lodging reservations can

be made in advance.

For more information, contact

Tate Thigpin at 800-340-9542, or

call the Downtown Inn direct at

662-234-3031.

Episode Seizure Management, NewDrugs I & II, Challenges of InsulinResistance and an Update on theTreatment of Parkinson’s Disease.The Saturday, January 20th sessionwill be capped off with the popularLeadership Pharmacy Dinner.

For more information onregistration, programming, andaccommodations, please visit the IowaPharmacy Association website—www.iarx.org, or see the November/December 2000 issue of The Journalof the Iowa Pharmacy Association.

Michigan Agency EstablishesGuidelines for Medicaid HMO’s

The Office of Financial andInsurance Services, which overseesMichigan’s HMO’s, has releasedguidelines that hold Medicaid HMO’smore accountable for making timelypayments to hospitals, physicians, andother health care providers. The newrules included instructions and formsthat require payment for Medicaidservices within 45 days after healthplans receive claims with penalties tothose who do not comply. The newclaims process is part of a series ofHMO reform legislation, meant toestablish time frames and cleardefinitions in order to reduce costsand confusion within the industry.

North Dakota Board E-mailThe North Dakota Board

of Pharmacy has recently estab-lished an e-mail address for yourgeneral use. The e-mail address [email protected].

The Board’s snail-mail addressis:

1906 E. Broadway Ave.PO Box 1354

Bismarck, ND 58502-1354Other contact information:

Phone-701-328-9535Fax 701-258-9312

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Drug Benefit On The RiseAccording to a survey

conducted by The Segal Co., aNew York based employee bene-fits consulting firm, the costs ofproviding drug benefits will riseby 20 percent. The reason for thisincrease is the rising patient’sdemand for specific medication,the aging of the nation’s work-force, and the emergence of new,expensive drug therapies.

The Segal Company alsoreported that

prescriptiondrugs areprojected to add 2 to 3percent to totalmedical planexpenditures.

Report CardContinuingEducation Units

Page 4: New Eucerin Introducing

Page 4

January 2001

National Birth Defects Prevention MonthContact: Resource CenterMarch of Dimes Birth DefectsFoundation1275 Mamaroneck AvenueWhite Plains, NY 10605(914) 997-4451 (National Office)(888) MODIMES(914) 997-4537 (fax)www.modimes.orgMaterials available, contact chapter.

National Glaucoma Awareness MonthContact: Alice Kelsey, MediaRelations ManagerPrevent Blindness America500 East Remington RoadSchaumburg, IL 60173(847) 843-2020(800) 331-2020(847) 843-8458 9fax)e-mail: [email protected] available

National Volunteer Blood Donor MonthAmerican Association of Blood Banks8101 Glenbrook RoadBethesda, MD 20814-2749(301) 907-6977(301) 907-6895 (fax)e-mail: [email protected]

February 2001

American Heart MonthContact Carrie Thacker, Director,Public RelationsAmerican Heart Association7272 Greenville AvenueDallas, TX 75231-4596(214) 373-6300(800) AHA-USA1(214) 369-3685 (fax)www.americanheart.orgInformation and materials available.

National Hypertension Awareness MonthContact: Frederick S. Mayer, R.Ph,M.P.H., PresidentPharmacists Planning Services, Inc. Post Office Box 6760

San Raffael, CA 94903-0760(415) 479-8628(415) 479-8608 (fax)e-mail: [email protected]

March 2001

Hemophilia Awareness MonthContact: Neil Frick, Manager ofHANDINational Hemophilia Foundation116 West 32nd Street, 11th floorNew York, NY 10001(212) 328-3700(800) 42-HANDI(212) 328-3777 (fax)e-mail [email protected]

National Colorectal CancerAwareness MonthContact: Stephanie Guiffre, Directorof Marketing and CommunicationsCancer Research Foundation of America1600 Duke Street, Suite 110Alexandria, VA 22314(703) 836-4412(703) 836-4413 (fax)e-mail: [email protected] available

National Nutrition MonthContact: Lorri FishmanNational Center for Nutrition andDietetics of the American DieteticAssociation216 West Jackson Blvd.Chicago, IL 60606-6995(312) 889-4771(312) 899-4739 (fax)e-mail: [email protected], t-shirts, water bottles, educationalmaterials, and more available.

National Poison Prevention Week March 18-24Contac Ken Giles, SecretaryPoison Prevention Week CouncilPost Office Box 1543Washington DC 20013(301) 504-0580, ext. 1184(301) 504-8062 (fax)e-mail: [email protected] orwww.poisonprevention.orgFree packet available

Celebrate National Health And Community Events

Page 9

Booming Market Forecast ForDrug Delivery Technology

Drug delivery stocks are enjoy-ing their best year ever—growingmore than 35 percent since Jan. 1,2000. This increase in market growthwill be more pronounced over thenext 3 to 5 years. This is particularlygood news for generic makers thatfrequently develop new deliverytechnologies for their versions ofbranded drugs. These new deliverysystems may be sold to other drugmakers or used for various products,all of which add to annual sales andhigher profits.

Examples include Andrx, which recently partnered with Direct, on an oral controlled-releasedelivery for Andrx’ generic version of AstraZeneca’s anti-ulcer drugPrilosec. Andrx is applying a similarrelease technology to its cholesterolreducer Lovastatin. Biovail has anew oral delivery system for itsversion of two hypertension drugs,Hoechst’s Cardizem and Pfizer’sProcardia. Biovail has teamed withTeva in those efforts.

The current market for drugdelivery technology is $50 billion ayear. By 2005, sales are expected totop $100 billion, as detailed below:

Worldwide Drug DeliveryMarket Growth (in $ billions)

TECHNOLOGY 2000 2005 Growth

Controlled release $14.2 $26.3 85%

Needle-less injection 0.4 1 150%

Injectable/implantable 3.8 7.2 89%

Transdermal delivery 6.7 12.7 90%

Transnasal delivery 8.2 16 95%

Pulmonary 11.7 22.6 93%

Transmucosal 2.4 6.5 171%

Rectal 0.5 1.2 140%

Liposomal 1.2 3.3 175%

Cell/gene therapy 0 5 500%

Miscellaneous 1.5 2.5 67%

Source: Informa

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New!New Report: Pharmacists Shortage Reaches Hospitals

Hospital pharmacy directors are hard-pressed to fill pharmacyopenings and in some cases have resorted to using additional incentives.According to a report published by the American Society of Health-System Pharmacists (ASHP), both frontline pharmacists and clinicalspecialists are said to be in short supply. After surveying 432 hospitaland health-system pharmacy directors, the report revealed pharmacistshortages to be widespread. The percentage of survey respondents whoreported their current vacancy rate as “much higher than five yearsago” doubled in the last year. Half of the pharmacy directors indicatedthat vacancies currently existed at their institutions.

The most serious shortages noted by 94 percent of pharmacydirectors were among experienced frontline practitioners. Seventypercent of respondents rated this shortage as severe compared to 48 percent in 1999.

John P. Santell, M.S., director of ASHP Center on PharmacyPractice Management, predicts that pharmacist positions will continueto be difficult to fill “at least for the next five years.” Hospitals arefacing competition from industry and community practice settings, hesays. Money is definitely an issue, “The money is better in industry, andeven in retail, than in health-system settings,” says Santell.

Seven of the 27 employment advertisements for pharmacists in arecent issue of the American Health Journal of Health-System Pharmacyoffered a signing bonus. None of the journal’s advertisements last yearmentioned a bonus.

Skin Cholesterol Test Targets Heart Disease

Skin cholesterol is an effective wayof identifying patientswho may have abuildup of plaque intheir arteries,according toresearch presentedat the American HeartAssociation meeting in NewOrleans. The new test, Cholesterol 1, 2, 3,does not involve blood, fasting, orwaiting hours or days for results. It is athree-minute test done with two drops ofliquid on the palm of the hand. A colorchange is read with a highly sensitivereader and provides a quantifiable resultthat indicates the patient’s risk forcardiovascular disease. Results of the400 patient clinical trial show that highlevels of skin cholesterol closely parallelcoronary artery blockage, which canlead to heart attack. IMI InternationalMedical Innovations Inc developedCholesterol 1,2,3. The product is to besubmitted to the FDA for approval earlythis year for use in doctors’ offices,pharmacies and potentially home use.

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Page 5: New Eucerin Introducing

NCPA and CDMA Team with NHIA at Expo 2001

The National Community Pharmacy Association (NCPA) and the ChainDrug Marketing Association (CDMA) have teamed up with the NationalHome Infusion Association (NHIA) this year for their midyear meeting. Themeeting—EXPO 2001—will be held February 20-23 in Las Vegas, Nevada.

This year’s event promises to be the largest and earliest ever—with strongvendor support on front-end and seasonal merchandise along with exhibits onpharmaceuticals, technology ware, and infusion products, among others. Anumber of educational workshops addressing both the business and clinicalsides of pharmacy practice are planned. For information about this excitingevent—visit www.ncpanet.org.

Carson Named President of NCPAJohn R. Carson, P.D., has recently beennamed the 103rd president of the NationalCommunity Pharmacists Association. Carson,a ’64 graduate of the University of TexasCollege of Pharmacy, founded OakdellPharmacy in San Antonio. He now ownsfour pharmacies and a home I.V.therapy company. Carson is a formerboard member and past president ofthe Texas Pharmacy Association.

Page 8

January 2001

Jan 17-22—NationalCommunity PharmacistsAssociation IndependentPharmacy Chain Conference Scottsdale, AZContact: (703) 683-8200

Jan 29-31—NationalAssociation of Wholesaler-DistributorsAnnual MeetingWashington, DCContact: (202) 872-0885

February 2001

Feb 4-7—NACDS RegionalChain Conference &Technology TheaterDisney’s Grand FloridianResort, Orlando, FLContact: (703) 549-3001

Industry Events Calendar

Feb 18-20—AmericanAssociation of Colleges of PharmacyInterim MeetingWashington, DCContact: (703) 739-2330

Feb 20-23—NCPA/CDMA/NHIA Expo 2001Las Vegas, NVContact (703) 549-3740

Feb 25-28—NACDSDistribution & LogisticsConferenceLake Buena Vista, FLContact: (703) 549-3001

March 2001

Mar 16-20—AmericanPharmaceuticalAssociation AnnualMeeting and ExpositionSan Francisco, CAContact: (202) 628-4410

Mar 29-April 1—PrivateLabel ManufacturersAssociation AnnualMeeting & LeadershipConferenceAventura, FLContact: (212) 972-3131

April 2001

Apr 18-21—Academy ofManaged Care Pharmacy13th Annual MeetingTampa, FLContact: (703) 683-8416

Apr 21-25—NACDS Annual MeetingScottsdale, AZContact: (703) 549-3001

Page 5

State Pharmacy AssociationAnnual Meetings

Michigan Pharmacists AssociationFebruary 16-18, 2001—HyattRegency, Dearborn, MI Contact: Pam Farley

(517) 377-0225

Ohio Pharmacists AssociationApril 6-8, 2001—GreaterColumbus Convention Center,Columbus, OHContact: Amy Bennett

(614) 798-0037

North Dakota PharmaceuticalAssociationApril 20-22, 2001—RamadaPlaza Suites, Fargo, NDContact: Galen Jordre

(701) 258-4968

Independent ChainConference Set

The NCPA IndependentPharmacy Chain Conference isscheduled for January 17-21,2001 at the Fairmont ScottsdalePrincess Hotel in Scottsdale,Arizona. Those independentpharmacy owners of two or morepharmacies or those owners whoplan to expand their currentpractices are encouraged toattend. The conference willfeature an extensive listing ofeducational programming andnumerous networking opportun-ities set in a magnificentlybeautiful facility. For moreinformation, visit the NCPAwebsite at www.ncpanet.org.

Generics Receive WideAcceptance

Almost universal acceptance ofgeneric drugs was confirmed by statisticsfound in the recently released 2000Retail Pharmacy Digest/MeasuringCustomer Satisfaction survey. Thesurvey measured customers’ reasons forbeing satisfied or dissatisfied with theirpharmacy services. The survey wassponsored by Ortho Biotech with thedata for the survey collected byCaredata.com Consumer Research Group.

According to the survey, use ofgeneric drugs is a commonplaceoccurrence. Approximately 70 percent-80 percent of the four major types ofpharmacies patronized—supermarket,mass merchant, chain andindependent—engaged in thesubstitution of generic drugs for brandedproducts. The highest rate of substitutionwas in the mass merchant outlets. Theindependent pharmacist was less likelyto substitute, although a large number,70 percent, said they engaged insubstitution.

The high numbers indicate thatpatients are satisfied when they receive ageneric drug. The Ortho Biotech surveyis important because it measurescustomer satisfaction, and with the highrate of generics dispensed, no pharmaciesreported dissatisfaction on the part ofconsumers as to the use of generics.

FDA Extends Prozac PatentThe FDA has extended Eli

Lilly’s Prozac patent for six monthsafter the Indianapolis-base drugcorporation agreed to submit studieson the use of the antidepressantmedication in pediatric patients. TheFDA requested that Lilly submit theProzac studies because of a lack ofdata on the effects of the medica-tion in the treatment of depressionamong children and adolescents.The patent extension will be ineffect from Feb. 2, 2001, until Aug.2, 2001, unless Lilly is successful in its pending appeal concerning theProzac patent expiration in 2003.

Tamiflu Gains New IndicationRoche’s Tamiflu (oseltamivir

phosphate), originally approved to treatuncomplicated influenza in adults, hasjust been cleared for prevention of thecondition in both adults and children 13years and older. The news comes at atimely juncture, when many healthproviders report that they still have notreceived their flu vaccine supply for theyear. While studies have shown thatTamiflu helped reduce the incidence offlu in treated subjects, the FDA stressedthat the antiviral is not a substitute forthe flu vaccine.

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Generics Will Get $3 BillionBoost From ExpiringBlockbuster Patents

Five brand name drugs, each of whose current annual sales are inexcess of $1 billion, will lose theirpatent protection by the end of 2003.These five drugs with nearly $11billion in 1999 sales will becomeopen to generic competition over the next three years.

Afterdiscounting thegeneric share tocompensate forthe lower price

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thesefive generic

items will realize anexcess of $3 billion in sales.

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Page 6 NEW DRUG UPDATE Page 7

Zyprexa Approved For Long-Term Use

Lilly’s Zyprexa (olanzapine)has received a new indication forlong-term therapy and maintenanceof treatment response forschizophrenia. The atypicalantipsychotic is claimed to be thefirst to prove its long-termeffectiveness in patients with thepsychiatric disorder. Study resultsindicated that placebo-treatedpatients were almost 10 times aslikely to relapseover a six-monthperiod comparedwith olanzapine-treated patients.This indicationcomes afterolanzapine’srecentapproval forshort-termtreatment ofacute manicepisodesassociated with bipolar disorder.

Lescol XL Gains Approval

Lescol XL 80 mg (fluvastatinsodium), from Novartis wasrecently approved by the FDA.Lescol XL is an extended-releaseand higher dose formulation ofLescol, an HMG-CoA reductaseinhibitor used to treat dyslipidemia.According to Novartis, Phase IIIclinical trials demonstrated thatLescol XL 80mg produced up to a38 percent median decrease in low-density lipoprotein cholesterol inpatients with dyslipidemia, and a 25percent median decrease intriglycerides and a 13 percent meanincrease in high-density lipoproteincholesterol in patients with primarymixed dylslipidemia, as comparedwith Lescol 40 mg therapy.

Lescol XL 80mg is indicatedas an adjunct to diet to reduceelevated total cholesterol and

apolipoprotein B levels, and toincrease HDL-C inpatients withprimary hypercholesterolemia andmixed dyslipidemia and to slow theprogression of atherosclerosis withcoronary heart disease.

Trizivir Introduced By GlaxoWellcome

The Food and DrugAssociation (FDA) has recentlyapproved Trizivir for the treatmentof HIV in adults and adolescents.

Each dose of Trizivir is afixed-dosecombination ofZiagen(abacavir/ABC),Retrovir(zidovudine/AZT),and Epivir(lamivudine/3TC)—three nucleosidereverse transscriptaseinhibitors (NRTIs)already approved bythe FDA. Because it isa fixed-dose tablet,

Trizivir is not recommended fortreatment in adults or adolescentswho weigh less than 40 kilograms.

Trizivir combines a single doseof three drugs into one pill, whichmay be easier for some patients tocomply with their medicationregimens. This combination productshould only be used by thosepatients whose treatment regimenswould otherwiseinclude thesedoses of these threenucleosideanalogues. It may beused aloneor in combination with otherantiretroviral agents for treatment of HIV infection, but should not be administeredconcomitantly with any of its threeingredients. The recommended doseis one tablet twice daily.

RU-486—Mifeprex

Some American physicianshave begun receiving and dispen-sing their first shipments of therecently approved abortion pill,mifepristone (Mifeprex), alsoknown as RU-486. Approved by the Food and Drug Administration(FDA) in September, mifepristonegives women another option forending unwanted pregnancies.

Because of FDA restrictions,not all doctors will be allowed todispense mifepristone. To qualify,physicians must first be able toaccurately date fetal age and excludetubal (ectopic) pregnancies, andthey must be able to provide accessto surgical abortion if necessary.

While this pill is anotheroption for women, it is definitelynot a quick or easy fix. As with anymedication, there are caveats to theuse of mifepristone, including thefact that it’s effective only in earlypregnancy (49 days or less,counting from the beginning of thelast menstrual period) and that awoman must visit her doctor atleast three times for therapy.

Abreva, SmithKline’s OTC Cold Sore Product

SmithKline has just introducedAbreva, the first OTC productapproved for the treatment of coldsores and fever blisters. Thisproduct differs from other productsalready on the market—it actuallyspeeds the healing rather than justtreating the symptoms.

The product contains 10%docosanol cream that actually

blocks the virus from entering thecells This mechanism of actiondoesn’t lead to viral resistance likeDenavir and Zovirax—whichinterfere with viral synthesis andhave a tendency to become resistant.

Abreva is most effective whenused at the first sign of an outbreakand should be applied up to 5 times daily to treat the sores.

MediSense’s Sof-Tact Approved By FDA

Abbott Laboratories MediSense Products has received the FDA’sapproval for Sof-Tact, a new diabetes management system. The firmclaims that Sof-Tact is the first automated glucose monitor to offer lancing,blood collection, and glucose testing with a single press of a button. Thesystem offers an alternative to the traditional finger-stick sampling method.The device allows samples to be drawn from less sensitive areas of the bodysuch as the forearm or upper arm. The device also employs new striptechnology, which requires less blood. The meter uses a vacuummechanism that holds the skin in place while an integrated apparatuslances the skin. The blood is automatically transferred to a low-volumebiosensor strip and a blood glucose test result is delivered in 20 seconds.

Health Insurers Keep An Eye On Costs Of Screening Tests

According to a recent article in USA Today, the use of scanning teststo detect cancer, heart disease, fractures, and thinning bones is on the rise,and health insurers think that the next jump in health insurance premiumsmay come as a result. Some insurers report 15 to 20 percent annualincreases in the number of X-rays, magnetic resonance imaging (MRI),computed tomography (CT) scans, and certain cardiac examsadministered. The growth in the use of these expensive tests is beingdriven by the aging population, new and better scanning equipment,patients demanding the tests after seeing advertisements, and doctors, short on time looking for quicker diagnoses.

Pharmacy and consumer education is acritical part of diabetes healthcare. D&K willprovide you with in-store diabetes self-helpreference materials, Diabetic Friendly shelfstickers and a hanging Diabetic Wellness POPdisplay. This kit includes information such as: manufacturer customer service phonenumbers, product marketing information,training materials, ad slicks, listings ofdiabetic health organizations and newproduct information. Updated materials willbe supplied to you as they become available.

Offer your customers one-stop shopping with

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See your D&K Sales Representative for more details.

NWDA To BecomeHealthcare DistributionManagement Association

On Jan. 8, 2001, theNational Wholesale Druggists’Association (NWDA) willofficially change its name tothe Healthcare DistributionManagement Association(HDMA). NWDA wasfounded as the WesternWholesale Druggists’ Associ-ation in Indianapolis, Ind. onMar. 15, 1876. That name was changed to the NationalWholesale Druggists’Association on Nov. 8, 1882.

The new name andidentity reflect the association’svision of a progressively moreefficient and effective distri-bution system. The design ofthe new logo implies a health-care distribution system that isconstantly in motion, 24 hoursa day, 365 days a year. Theunclosed rings depict members’leadership role in managing asystem in a perpetual state ofevolution.

The rollout of the newname will cover a period of 6-12 months, and will includethe announcement as well asthe introduction of the name to various constituents.