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Pedigree paralysis no more

FDA mandate for secondary wholesalers may help drive RFID into drug distribution chain.

Pw 9530 Production 1

The FDA’s decision to require limited pedigrees for some drugs December 1 increases pressure on Congress to mandate a unit packaging solution to the drug counterfeiting problem, setting the stage for consideration of the RFID Act on Capitol Hill.

“When Americans are paying 30- to 300-percent more for their prescription drugs than other industrialized nations, it creates a market for counterfeiting,” says Rep. Gil Gutknecht (R-MN), one of the sponsors of the RFID Act. “Because of the FDA’s reluctance to issue clear guidelines for anti-counterfeiting technology, Congress has been forced to introduce legislation to deal with this issue.”

Gutknecht concluded the hearing of the House Government Reform Committee held July 11 by saying, “What we heard today is widespread support from the technology industry and pharmacists for the approach taken in the RFID Act. Now is the time for the FDA to act.”

The Reducing Fraudulent and Imitation Drugs Act of 2006 (RFID Act) would require drug manufactures to use three things: radio frequency identification (RFID) tagging or similar track and trace technologies “that have an equivalent function,” tamper-indicating security measures, and blister security packaging when possible.

The FDA has all but invited Congress to pass some version of that bill. In the report the agency issued in June accompanying its admittedly stopgap action on pedigrees, the FDA said: “We also agree with the comments that a single, national, uniform pedigree would be ideal to help ensure efficient distribution of safe and effective medicines. Under existing law, FDA lacks statutory authority to implement a universal and nationally uniform pedigree. If legislation is considered in this area, we stand ready to provide technical assistance.”

Wholesale pedigrees

Not only may the FDA’s limited move stimulate congressional action, it may also light an RFID fire under the industry where only a small pile of wood chips has smoldered. The FDA’s action directly affects only secondary wholesalers who buy product from other drug wholesalers.

These wholesalers must provide pedigrees for each drug package they distribute. They can use paper pedigrees, with all their shortcomings, computer-generated electronic pedigrees, or EPC RFID-tagged pedigrees, which the FDA would like to see become widespread. RFID pedigrees are being used by only a handful of manufacturers and distributors such as Pfizer and Cardinal Health, and only in a limited way.

Primary wholesalers that only buy direct from drug manufacturers will be indirectly affected. But Scott Melville, senior vice president at the Healthcare Distribution Management Assn. (HDMA), which represents primary drug distributors such as Cardinal Health and smaller competitors, points out that his members will have to pass pedigree information, which the FDA has defined, to the secondary wholesalers. So in a sense, the FDA requirement also puts an onus, though an indirect one, on the primary wholesaler.

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