Q&A: DSCSA Focus Shifts to Wholesaler/Distributors

Healthcare Packaging looks at the Drug Supply Chain Security Act (DSCSA), circa 2019, in this exclusive interview with Peter Sturtevant, Senior Director, Industry Engagement—Pharmaceuticals, GS1 US.

Top Three Takeaways:

  1. Manufacturers that receive a verification request from a wholesaler/distributor or dispenser will be required to verify all serialized packages.
  2. Serialization ROI comes from increased patient safety, meeting DSCSA compliance and realizing greater supply chain efficiencies.
  3. Improvements in tracking of saleable returns with the new verification messaging standard may also positively affect the industry’s ability to screen out illegitimate products.   

Healthcare Packaging (HCP): What is the current focus of Drug Supply Chain Security Act (DSCSA)?

Peter Sturtevant: This year, the focus is shifting to wholesaler/distributors; beginning November 27, 2019, DSCSA will require them to verify the unique identifier of returned products before these can be placed into inventory for resale. A manufacturer that receives a verification request from a wholesaler/distributor or dispenser will be required to verify all serialized packages.

GS1 has just launched a new Messaging Standard in collaboration with GS1 US for the verification of serialized prescription products to meet the requirements for saleable returns. Developed and vetted by a global GS1 workgroup comprised of manufacturers, distributors and solution providers, this new standard specifies a lightweight messaging framework for product verification request and response. It will enable supply chain partners to verify that a product in their possession is suitable for forward distribution, helping them to determine whether to accept, reject or quarantine it.

HCP: How can pharma manufacturers put serialization-related data to meaningful use within their companies to help demonstrate a Return on Investment (ROI)?

Peter Sturtevant: The industry has made these investments to meet the requirements of the law with a goal of improving patient safety. According to the Patient Safety Network, adverse drug events are one of the most common preventable adverse events in all settings of care, accounting for nearly 700,000 emergency department visits and 100,000 hospitalizations[1]. The World Health Organization (WHO) states that unsafe medication practices and medication errors are a leading cause of avoidable harm in healthcare systems across the world, with a global cost estimated at $42 billion annually[2]. Knowing this, how can we place a dollar value on saving lives?

In addition to checking off the regulatory box and improving patient safety, financial benefits of serialization may be realized through resulting efficiencies in the pharmaceutical supply chain including traceability, inventory management, secure supply chains, and contract management. Improved verification of saleable returns can further reduce supply chain costs, since products that can’t be verified must be destroyed, at a considerable cumulative expense. 

HCP: Is the ultimate goal(s) of serialization to improve patient safety and reduce the nation’s healthcare costs?

Peter Sturtevant: Most regulatory control in healthcare like DSCSA serialization of pharmaceuticals is aimed at improving patient safety while also driving operational efficiencies. The ability to track and verify complete, correct product identification throughout the supply chain and at point of use will help ensure delivery of what the Institute for Healthcare Improvement (IHI) calls the “five rights” of medication administration: the right drug reaches the right patient in the right dose, at the right time, via the right route. It also facilitates safe, timely and accurate removal of expired or recalled products from inventory.

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