what you need to know about the drug quality security act (dqsa)

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What You Need to Know about the Drug Quality Security Act (DQSA) By Laura M. Olson Director of Sales and Marketing Initial Implementation Phases

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The new Drug Quality Security Act (DQSA) signed into law by President Obama in November 2013 takes effect January 2015. Designed to address threats to patient safety and security, the new federal law will improve the effectiveness of product recalls and provide one uniform policy nationwide. DQSA pre-empts the new California e-pedigree law as well as the 30 or so other state drug pedigree laws nationwide. This new law affects pharma manufacturers, repackagers, wholesale distributors, third party logistics providers and dispensers. This law marks the first time that the FDA has been given sweeping oversight of the pharmaceutical supply chain. For more information, visit www.datexcorp.com.

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Page 1: What You Need to Know About the Drug Quality Security Act (DQSA)

What You Need to Know about the Drug Quality Security Act (DQSA)

By Laura M. OlsonDirector of Sales and Marketing

Initial Implementation Phases

Page 2: What You Need to Know About the Drug Quality Security Act (DQSA)

DQSA Policy Background

New regulation was needed to:

• Address threats to patient safety and security

• Address documented history of counterfeit product

• Improve effectiveness of product recalls

• Provide a uniform policy nationwide

Page 3: What You Need to Know About the Drug Quality Security Act (DQSA)

New U.S. Federal law H.R. 3204, the Drug Quality Security Act (DQSA) also known as the Drug Supply-Chain Security Act (DSCSA)

• Signed by President Obama - goes into effect January 1, 2015

• Pre-empts the California law and the 30 or so other state drug pedigree laws nationwide

• Bill excludes certain classes such as blood-derived products, imaging products, veterinary medicine.

About the DQSA

Page 4: What You Need to Know About the Drug Quality Security Act (DQSA)

Who is Covered?

• Manufacturers• Repackagers• Wholesale Distributors• Third Party Logistics Providers• Dispensers

Special note: an individual entity can operate in more than one capacity

About the DQSA

Page 5: What You Need to Know About the Drug Quality Security Act (DQSA)

• FDA starts regulating the pharmaceutical supply chain with implementation of this law

• This is the first time the FDA has been given sweeping oversight of the drug supply chain

• Companies need to work out technology and process issues related to the implementation of phase 1 of Title II of DQSA

About the DQSA

Page 6: What You Need to Know About the Drug Quality Security Act (DQSA)

DQSA Covers:

• Traceability requirements generally apply to each product and transaction

• Product= prescription drugs in finished dosage form intended for human use

• Transaction= transfer of product between persons in which a change of ownership occurs

About the DQSA

Page 7: What You Need to Know About the Drug Quality Security Act (DQSA)

What is Exchanged:

• Transaction information (TI)

• Transaction history (TH)

• Transaction statement (TS)

About the DQSA

Page 8: What You Need to Know About the Drug Quality Security Act (DQSA)

Terminology

• TI=Transaction information

• TH=Transaction history

• TS=Transaction statement

• Dispensers:

Retail pharmacies and hospital pharmacies

Group of chain pharmacies under common ownership & control

Affiliated warehouses or distribution centers

Any person legally authorized to dispense or administer prescription drugs

and their affiliated warehouses or distribution centers under common

ownership or control

Page 9: What You Need to Know About the Drug Quality Security Act (DQSA)

Terminology

Dispensers that act as a wholesale distributor are required to comply with wholesaler responsibilities.

This provision also applies to other supply chain entities.

Page 10: What You Need to Know About the Drug Quality Security Act (DQSA)

Terminology

Authorized Trading Partners

Must have valid registration, federal or state license required by DQSA

Entities that transfer ownership are required to state that they are “authorized as required under the” DQSA

Transferring Entities must provide applicable license number or registration in the transaction statement

Page 11: What You Need to Know About the Drug Quality Security Act (DQSA)

Product Identification

SNI=Standard Numerical Identifier

Set of characters or numbers that is used to provide a unique identification eachpackage or homogenous case composed of the National Drug Code correspondingto the specific product and respective package configuration combined with a unique serial number (alphanumeric) with a maximum of 20 characters.

Page 12: What You Need to Know About the Drug Quality Security Act (DQSA)

Product Identification

Package

Defined as the “smallest individual saleable unit of a product for distribution by aManufacturer or Repackager that is intended by the Manufacturer for ultimate saleto the Dispenser of such product”.

21 U.S.C. § 360eee(11)

Page 13: What You Need to Know About the Drug Quality Security Act (DQSA)

Product Identification

Product Identifier

This is a GS-1 compliant standardized graphic that includes:

• In both machine-readable data carrier and human readable form:

Lot numberExpiration date of the product Standardized numerical identifier

Page 14: What You Need to Know About the Drug Quality Security Act (DQSA)

For Pharmaceutical Manufacturers

Product tracking at lot level:

• Must provide/receive transaction history, information & statements prior to or at the time of change of ownership of a drug product

• Provide a list of transaction information of all changes of ownership going back to manufacturer

January 1, 2015 Timeline:

Page 15: What You Need to Know About the Drug Quality Security Act (DQSA)

For Dispensers

January 1, 2015:

• Authorized trading partners only

Initial Timeline:

Page 16: What You Need to Know About the Drug Quality Security Act (DQSA)

Verification of product & transactions in the case of suspected product:

• Must be able to validate product with partners as well as transaction history

• Must have systems in place to support investigating suspect products

• Must have systems to notify FDA & all immediate trading partners about suspect product

For Pharmaceutical Manufacturers

January 1, 2015 Timeline:

Page 17: What You Need to Know About the Drug Quality Security Act (DQSA)

Request for information

• When requested, must be able to provide transaction info, history & statements for product within 48 hours of request

For Pharmaceutical Manufacturers

January 1, 2015 Timeline:

Page 18: What You Need to Know About the Drug Quality Security Act (DQSA)

November 27, 2017 Timeline:

For Pharmaceutical Manufacturers

Product Identifiers: Serialization

• All drug products are required to be encoded with a unique product identifier that must be at the smallest saleable unit

• Without this unique identifier, downstream partners may not purchase the drug product

Page 19: What You Need to Know About the Drug Quality Security Act (DQSA)

November 27, 2017 Timeline:

For Pharmaceutical Manufacturers

Package Level Verification

• Drug products must be able to be verified at the package level SNI (standardized numerical identifier)

Page 20: What You Need to Know About the Drug Quality Security Act (DQSA)

November 27, 2017 Timeline:

For Pharmaceutical Manufacturers

Request for Verification

• Required response time for drug product verification by a trading partner for a product that is in the possession of the trading partner

• 24 hours to respond

• Drug product identifier including SNI