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PSYCHEMEDICS                                                                    THE FACTS
C   O   R   P   O   R    A   T   I   O   N
                                                                                         About Drug Abuse
                                                                                                                              3rd & 4th Quarter 2009

                                             A Prime Cost Savings Measure: Keeping Employees Drug-Free
                                             According to a recent article in EHS   The American Council for Drug          Leaders of SMACNA Chicago and
 Inside this issue:                          Today, “In today’s sluggish            Education states that substance        their work force, Sheet Metal
                                             economy, most companies are            abusers on the job are:
               Workers Local 73, believe so
                                             exploring ways they can reduce                                                strongly in the value of drug
 In The News:                    2           inventory, personnel and expenses.     • 10 times more likely to miss
                                                                                                                           testing, they have developed and
 Employee Drug Stories                       But according to an executive with     work.
                                                                                                                           implemented drug-testing policies
                                             a Chicago construction association,    • 3.6 times more likely to be
                                                                                                                           for their workers.
                                             many businesses may be                 involved in on-the-job accidents –
                                                                                    and five times more likely to injure
 Drugged Driving:                2           overlooking a prime cost-saving                                               Individuals covered by the policy
                                                                                    themselves or another in the
 Roadside Motorist Survey                    measure: keeping employees drug-                                              are required to submit to drug
                                                                                    process.
 Shows Drivers Drug Use                      free.                                                                         testing on a regular basis in
                                                                                    • 5 times more likely to file a
                                                                                                                           accordance with this program.
                                                                                    worker’s compensation claim.
                                             “Because drug testing may involve                                             Contractors that are signatory to
 Astounding Facts:               2           additional expense, some business                                             the union are required to comply
 Rain Forests Destroyed                                                             “On construction jobsites, the
                                             owners and managers may decide                                                with the testing program, and
 for Cocaine                                                                        repercussions of jobsite drug abuse
                                             against it,” said Tony Adolfs of the                                          penalties for non-compliance
                                                                                    can go far beyond negative impacts
                                             Sheet Metal and Air Conditioning                                              include a minimum fine of $2,500.
                                                                                    on individual workers,” said Adolfs.
                                             Contractors’ National Association
 Illegal Pot Farms:              3           (SMACNA) of Chicago. “Drug
                                                                                    “Expensive delays and skyrocketing
                                                                                                                           “Promoting safer jobsites and
 Grown In Our National                                                              insurance rates can throw projects
                                             testing policies help improve                                                 greater productivity are top
 Forests                                     employee performance in most           off-schedule and off-budget. If
                                                                                                                           priorities for SMACNA Chicago
                                             work settings. In settings where       Chicagoland building owners and
                                                                                                                           and our signatory contractors,”
                                             employee error can result in           contractors want to improve the
                                                                                                                           Adolfs said. “We want Chicagoland
                                             property damage, injuries, or loss     bottom line – especially in this
                                                                                                                           construction to thrive, and drug
                                             of life, such as construction          sluggish economy – they need to
                                                                                                                           testing provides essential support
                                             jobsites, it is definitely an option   make sure they are employing a
                                                                                                                           in achieving that goal.”
                                             worth exploring.”                      100 percent drug-free workforce.”


                                                      View full article at: http://ehstoday.com/safety/management/keeping-employees-drug-free-2333/




                                                                               Notes from Ray Kubacki

        Stats from OSHA                      Dear Valued Clients and Friends,

                                             Hiring drug free employees and keeping all employees drug free is a
*Drug users utilize 300% more                prime cost savings action all companies can take--- and this is
medical benefits                             highlighted in the first article above. However, if you are truly
                                                                                                                                       Raymond Kubacki, Chairman & CEO,  
                                                                                                                                           Psychemedics Corporation 

                                             going to reap significant returns from your investment in drug
*47% of all industrial accidents             testing, it is important that you use the most effective test.
in the US are related to drugs
& alcohol                                           What is the true cost savings if people are beating your test?
                                                    What is the impact on morale if people know the test is being beaten?
*Drug users file 5 times more                       W hat is the real deterrent impact if the test you are using can be easily beaten?
workers comp claims
                                             Please forgive me for being unabashedly commercial, but the total economics
                                             compellingly favor the Psychemedics patented hair test in all areas cited above.


                                             Best Regards,
                                             Ray


                    Psychemedics Corporation ~ Toll Free: 800.628.8073 ~ Fax: 978.264.9236 ~ www.psychemedics.com
PSYCHEMEDICS
                                                                                                                                C      O   R      P    O      R   A      T    I   O   N



Page 2

                 Employee Drug Stories In The News
 Companies that drug test their employees recognize that anyone involved in drugs can
 be a huge liability to the company. Here are a few recent examples of companies in the
 news because of an employee being involved with drugs:
 AIRLINE CREW CHARGED IN               NURSING HOME WORKER                UPS EMPLOYEE CHARGED
        DRUG BUST                       ACCUSED OF STEALING                WITH STEALING PILLS
 9/16/09—Federal prosecutors            PATIENTS’ MORPHINE                    FROM PACKAGES
 charged 23 people, including 9       9/2/09—A Cumberland County         9/8/09—A United Parcel                       DRIVER IN DEADLY TEXAS
 American Airlines’ employees,        nursing home worker is accused     Service employee was slapped                  BUS CRASH HAD USED
 with operating a drug smuggling      of stealing liquid morphine        with a drug dealing charge after                    COCAINE
 ring that shipped thousands of       from patients and replacing the    police accused him of stealing          8/27/09 Dallas—A drug test
 pounds of cocaine in suitcases on    pain-relieving drug with water.    prescription pills from mail            conducted on the driver
 flights from Puerto Rico to the      The worker was employed at an      packages at a distribution center       involved in a bus crash that
 U.S. The smuggling operation is      Assisted Living facility and       in Fairfax. Police said the             killed 17 passengers showed that
 one of several uncovered in recent   while there, stole morphine and    employee admitted that he had           he had recently used cocaine.
 years that used airline employees    other prescription drugs to feed   been stealing prescription pills        The driver and his employer are
 and commercial aircraft to ship      her own habit.                     from the UPS distribution center        being sued by the relatives of the
 drugs or launder cash proceeds                                          to sell on the street.                  crash victims.
                                      Source: WGAL.com
 from drug sales.                                                        Source: The Washington Examiner         Source: AP
 Source: Wall Street Journal




 Roadside Survey Shows Prevalence of Drug Use By Drivers
 The National Highway Traffic Safety             These survey results are higher than
 Administration (NHTSA) recently                 what you typically see with pre-
 released the finding of a 2007 National         employment urine and oral test
 Roadside Survey. For the first time,            results. The higher positive rates
 this survey included measures to                described in this report not only
 estimate the use of impairing drugs by          highlight a more realistic percentage
 motorists.                                      of drug users in the general public,
                                                 but also reflect what the pre-
 Drivers (motorists) were randomly               employment drug testing results
                                                 might look like if drug users were not         Commonly Detected Drugs of Nighttime Drivers
 stopped at 300 different locations to
 perform voluntary and anonymous                 able to “prep” for urine and oral tests
 drug and alcohol tests. 7,719 oral and          in advance.                                        Meth       1.3%

 3,276 blood samples were collected.
 The results of the blood/oral tests             Oral fluid and blood samples have                Cocaine                3.9%
                                                                                                                                                                  Marijuana

 found that a stunning 16.3% of                  very short detection windows –                                                                                   Cocaine


 nighttime motorists were drug-                  typically 12 to 36 hours depending on                                                                            Meth
                                                                                                Marijuana
 positive. 11% of daytime motorists              the type of drug ingested. If a                                                                  8.6%


 were drug positive. The most                    different testing technology (such as
                                                                                                        0.0%   2.0%    4.0%     6.0%       8.0%       10.0%
 commonly detected drugs were                    hair testing) had been used, the
 Marijuana at 8.6%, Cocaine at 3.9% and          positive rates may have been much
 Methamphetamine at 1.3% of nighttime            higher.
 motorists.                                      cases.                                         The study can be viewed at www.nhtsa.gov




                               ASTOUNDING FACTS: Rain Forests Destroyed for Cocaine
 Over the past twenty years, approximately 5.9 million acres of rain forest have been lost to drug production fields in Peru,
 Bolivia and Colombia. According to Peruvian forest engineer Marc J. Dourojeanni, coca growers annually dump 15 million
 gallons of kerosene, 8 million gallons of sulphuric acid, 1.6 million gallons of acetone, 1.6 million gallons of the solvent
 toluene, 16,000 tons of lime and 3,200 tons of carbide into the valley’s watershed.
PSYCHEMEDICS
C   O   R   P    O   R   A   T   I   O   N



                                                                                                                                                 Page 3

                                         The Spread of Illegal Pot Farms In Our National Forests
                                                                 Illegal marijuana growers (many are              plantations big enough for tens of
                                                                 believed to be affiliated with Mexican           thousands of plants. They apply
                                                                 drug cartels) are aggressively expanding         pesticides and herbicides -- some not
                                                                 their farming operations in the U.S.,            approved for U.S. use. They dam or
                                                                 clearing land to plant pot in national           divert streams and hook together miles
                                                                 forests from coast to coast. Authorities         of PVC piping to build irrigation
                                                                 have discovered pot farms in 61 national         systems, some rigged to sophisticated
                                                                 forests in 16 states this year, which is up      timers.
                                                                 from 49 forests in 10 states last year.
                                                                                                                  The high dollar marijuana farms can
                                                                     California in particular is shattering       also damage the environment. The
                                                                     records for pot seizures from raids on       propane tanks, stoves and trash left
                                                                     illicit marijuana gardens this year.         behind by pot farmers pose fire risks;
                                                                     Authorities blame Mexican drug               such a camp is believed to have
        A drug camp is believed to have sparked the fire that burned networks that seek remote growing            sparked a fire last month that burned
          88,000 acres in California’s Los Padres National Forest.   sites, supply and arm workers, and           88,000 acres in California's Los Padres
                                                                     harvest and traffic the pot. Plant           National Forest. The forest vegetation
                                                                     seizures from outdoor marijuana grows,       is usually altered or destroyed in order
                                                                     found in 40 of 58 California counties last   to grow the large amount of plants ,and
                                                                     year, exceeded the next closest state –      growers bring in materials that add to
                                                                     Washington – by eight times.                 the damage (propane tanks, fertilizers
                                                                                                                  and chemicals that aren’t allowed in the
                                                                 "I think they're growing more and we're          U.S.). All that can damage the soil and
                                                                 finding more," said Michelle Gregory,            trees in addition to creating danger for
                                                                 special agent for the state attorney             wild animals in the area.
                                                                 general's Bureau of Narcotics
                                                                 Enforcement. "We would like to say that          Experts think that growing marijuana in
                                                                 we find 50 percent of the grows, but             the U.S. is becoming increasingly
                                                                 honestly we don't know how much we               attractive to foreign cartels because
                1995 States reporting drug trafficking           miss."                                           increased security along the Mexican
                activity in national forests                                                                      border have made is tougher to
                                                                 With the expansion comes an increased            smuggle drugs into the this country.
                                                                 risk to campers and hikers. Each camp            Pot growers may also find this an ideal
                                                                 is typically booby-trapped or tended             time to expand because many cash-
                                                                 around the clock by guards who may be            strapped states and counties have had
                                                                 equipped with assault rifles, night-vision       to cut patrols and surveillance back.
                                                                 goggles, walkie-talkies and radios to
                                                                 monitor law-enforcement chatter.                 So far this year, federal agents have
                                                                 Some are remote, but others are near             raided 487 pot farms on forest-service
                                                                 popular tourist sites, such as a pot farm        land, where they destroyed 2.6 million
                                                                 discovered late last month in California's       marijuana plants, seized 138 firearms
                                                                 Sequoia National Park, a half-mile from a        and made 369 arrests on felony drug
                2009 States reporting drug trafficking           cave famed for its crystal formations.           charges.
                activity in national forests                     The pot farms are not fly-by-night
                                                                 operations. Growers cut down trees
                                                                 and terrace canyons to create
        Portions of this article came from the following sources:
        http://online.wsj.com/article/SB125193614108781629.html, http://www.sacbee.com/ourregion/story/2195235.html



                                                                    Did You Know ??
            Psychemedics washes the hair samples that we receive for testing longer than you wash your clothes at home!

        The sample undergoes an extensive wash process, using six separate wash solutions with a total processing time of 3
        hours and 45 minutes. Peer-reviewed scientific studies have shown that this extensive wash procedure enables our
        laboratory to remove or account for external contamination. Psychemedics’ wash procedures are the most extensive in the
        industry. We can tell the difference between ingestion and external contamination, and we can testify conclusively in court.
PSYCHEMEDICS
C   O   R   P   O   R   A   T   I   O   N




    Superior Detection
      of Drug Abuse


    PSYCHEMEDICS
CLIENT SERVICES INFO:

     Client Services hours:
    6:00 AM—5:30 PM PST
        Monday – Friday

     5832 Uplander Way
    Culver City, CA 90230

     Phone: 800.522.7424
     Fax:   800.643.2354




                                            About Psychemedics

                                            Psychemedics was established in 1987 to provide testing for drugs of abuse
                                            using hair analysis, and has been successfully operating for over 20 years.
                                            Thousands of corporations currently rely on Psychemedics’ patented hair
                                            analysis technology for their pre-employment and employee drug screening.
                                            Psychemedics is headquartered in Boston and has offices in Dallas, Chicago,
                                            Los Angeles and Las Vegas. Our Laboratory is located in Culver City, CA.
                                            Psychemedics is a publicly-held corporation listed on NASDAQ under the
                                            ticker symbol PMD.

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Client Newsletter 3rd & 4th Quarter 2009

  • 1. PSYCHEMEDICS THE FACTS C O R P O R A T I O N About Drug Abuse 3rd & 4th Quarter 2009 A Prime Cost Savings Measure: Keeping Employees Drug-Free According to a recent article in EHS The American Council for Drug Leaders of SMACNA Chicago and Inside this issue: Today, “In today’s sluggish Education states that substance their work force, Sheet Metal economy, most companies are abusers on the job are:
  Workers Local 73, believe so exploring ways they can reduce strongly in the value of drug In The News: 2 inventory, personnel and expenses. • 10 times more likely to miss testing, they have developed and Employee Drug Stories But according to an executive with work. implemented drug-testing policies a Chicago construction association, • 3.6 times more likely to be for their workers. many businesses may be involved in on-the-job accidents – and five times more likely to injure Drugged Driving: 2 overlooking a prime cost-saving Individuals covered by the policy themselves or another in the Roadside Motorist Survey measure: keeping employees drug- are required to submit to drug process. Shows Drivers Drug Use free. testing on a regular basis in • 5 times more likely to file a accordance with this program. worker’s compensation claim. “Because drug testing may involve Contractors that are signatory to Astounding Facts: 2 additional expense, some business the union are required to comply Rain Forests Destroyed “On construction jobsites, the owners and managers may decide with the testing program, and for Cocaine repercussions of jobsite drug abuse against it,” said Tony Adolfs of the penalties for non-compliance can go far beyond negative impacts Sheet Metal and Air Conditioning include a minimum fine of $2,500. on individual workers,” said Adolfs. Contractors’ National Association Illegal Pot Farms: 3 (SMACNA) of Chicago. “Drug “Expensive delays and skyrocketing “Promoting safer jobsites and Grown In Our National insurance rates can throw projects testing policies help improve greater productivity are top Forests employee performance in most off-schedule and off-budget. If priorities for SMACNA Chicago work settings. In settings where Chicagoland building owners and and our signatory contractors,” employee error can result in contractors want to improve the Adolfs said. “We want Chicagoland property damage, injuries, or loss bottom line – especially in this construction to thrive, and drug of life, such as construction sluggish economy – they need to testing provides essential support jobsites, it is definitely an option make sure they are employing a in achieving that goal.” worth exploring.” 100 percent drug-free workforce.” View full article at: http://ehstoday.com/safety/management/keeping-employees-drug-free-2333/ Notes from Ray Kubacki Stats from OSHA Dear Valued Clients and Friends, Hiring drug free employees and keeping all employees drug free is a *Drug users utilize 300% more prime cost savings action all companies can take--- and this is medical benefits highlighted in the first article above. However, if you are truly Raymond Kubacki, Chairman & CEO,   Psychemedics Corporation  going to reap significant returns from your investment in drug *47% of all industrial accidents testing, it is important that you use the most effective test. in the US are related to drugs & alcohol  What is the true cost savings if people are beating your test?  What is the impact on morale if people know the test is being beaten? *Drug users file 5 times more  W hat is the real deterrent impact if the test you are using can be easily beaten? workers comp claims Please forgive me for being unabashedly commercial, but the total economics compellingly favor the Psychemedics patented hair test in all areas cited above. Best Regards, Ray Psychemedics Corporation ~ Toll Free: 800.628.8073 ~ Fax: 978.264.9236 ~ www.psychemedics.com
  • 2. PSYCHEMEDICS C O R P O R A T I O N Page 2 Employee Drug Stories In The News Companies that drug test their employees recognize that anyone involved in drugs can be a huge liability to the company. Here are a few recent examples of companies in the news because of an employee being involved with drugs: AIRLINE CREW CHARGED IN NURSING HOME WORKER UPS EMPLOYEE CHARGED DRUG BUST ACCUSED OF STEALING WITH STEALING PILLS 9/16/09—Federal prosecutors PATIENTS’ MORPHINE FROM PACKAGES charged 23 people, including 9 9/2/09—A Cumberland County 9/8/09—A United Parcel DRIVER IN DEADLY TEXAS American Airlines’ employees, nursing home worker is accused Service employee was slapped BUS CRASH HAD USED with operating a drug smuggling of stealing liquid morphine with a drug dealing charge after COCAINE ring that shipped thousands of from patients and replacing the police accused him of stealing 8/27/09 Dallas—A drug test pounds of cocaine in suitcases on pain-relieving drug with water. prescription pills from mail conducted on the driver flights from Puerto Rico to the The worker was employed at an packages at a distribution center involved in a bus crash that U.S. The smuggling operation is Assisted Living facility and in Fairfax. Police said the killed 17 passengers showed that one of several uncovered in recent while there, stole morphine and employee admitted that he had he had recently used cocaine. years that used airline employees other prescription drugs to feed been stealing prescription pills The driver and his employer are and commercial aircraft to ship her own habit. from the UPS distribution center being sued by the relatives of the drugs or launder cash proceeds to sell on the street. crash victims. Source: WGAL.com from drug sales. Source: The Washington Examiner Source: AP Source: Wall Street Journal Roadside Survey Shows Prevalence of Drug Use By Drivers The National Highway Traffic Safety These survey results are higher than Administration (NHTSA) recently what you typically see with pre- released the finding of a 2007 National employment urine and oral test Roadside Survey. For the first time, results. The higher positive rates this survey included measures to described in this report not only estimate the use of impairing drugs by highlight a more realistic percentage motorists. of drug users in the general public, but also reflect what the pre- Drivers (motorists) were randomly employment drug testing results might look like if drug users were not Commonly Detected Drugs of Nighttime Drivers stopped at 300 different locations to perform voluntary and anonymous able to “prep” for urine and oral tests drug and alcohol tests. 7,719 oral and in advance. Meth 1.3% 3,276 blood samples were collected. The results of the blood/oral tests Oral fluid and blood samples have Cocaine 3.9% Marijuana found that a stunning 16.3% of very short detection windows – Cocaine nighttime motorists were drug- typically 12 to 36 hours depending on Meth Marijuana positive. 11% of daytime motorists the type of drug ingested. If a 8.6% were drug positive. The most different testing technology (such as 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% commonly detected drugs were hair testing) had been used, the Marijuana at 8.6%, Cocaine at 3.9% and positive rates may have been much Methamphetamine at 1.3% of nighttime higher. motorists. cases. The study can be viewed at www.nhtsa.gov ASTOUNDING FACTS: Rain Forests Destroyed for Cocaine Over the past twenty years, approximately 5.9 million acres of rain forest have been lost to drug production fields in Peru, Bolivia and Colombia. According to Peruvian forest engineer Marc J. Dourojeanni, coca growers annually dump 15 million gallons of kerosene, 8 million gallons of sulphuric acid, 1.6 million gallons of acetone, 1.6 million gallons of the solvent toluene, 16,000 tons of lime and 3,200 tons of carbide into the valley’s watershed.
  • 3. PSYCHEMEDICS C O R P O R A T I O N Page 3 The Spread of Illegal Pot Farms In Our National Forests Illegal marijuana growers (many are plantations big enough for tens of believed to be affiliated with Mexican thousands of plants. They apply drug cartels) are aggressively expanding pesticides and herbicides -- some not their farming operations in the U.S., approved for U.S. use. They dam or clearing land to plant pot in national divert streams and hook together miles forests from coast to coast. Authorities of PVC piping to build irrigation have discovered pot farms in 61 national systems, some rigged to sophisticated forests in 16 states this year, which is up timers. from 49 forests in 10 states last year. The high dollar marijuana farms can California in particular is shattering also damage the environment. The records for pot seizures from raids on propane tanks, stoves and trash left illicit marijuana gardens this year. behind by pot farmers pose fire risks; Authorities blame Mexican drug such a camp is believed to have A drug camp is believed to have sparked the fire that burned networks that seek remote growing sparked a fire last month that burned 88,000 acres in California’s Los Padres National Forest. sites, supply and arm workers, and 88,000 acres in California's Los Padres harvest and traffic the pot. Plant National Forest. The forest vegetation seizures from outdoor marijuana grows, is usually altered or destroyed in order found in 40 of 58 California counties last to grow the large amount of plants ,and year, exceeded the next closest state – growers bring in materials that add to Washington – by eight times. the damage (propane tanks, fertilizers and chemicals that aren’t allowed in the "I think they're growing more and we're U.S.). All that can damage the soil and finding more," said Michelle Gregory, trees in addition to creating danger for special agent for the state attorney wild animals in the area. general's Bureau of Narcotics Enforcement. "We would like to say that Experts think that growing marijuana in we find 50 percent of the grows, but the U.S. is becoming increasingly honestly we don't know how much we attractive to foreign cartels because 1995 States reporting drug trafficking miss." increased security along the Mexican activity in national forests border have made is tougher to With the expansion comes an increased smuggle drugs into the this country. risk to campers and hikers. Each camp Pot growers may also find this an ideal is typically booby-trapped or tended time to expand because many cash- around the clock by guards who may be strapped states and counties have had equipped with assault rifles, night-vision to cut patrols and surveillance back. goggles, walkie-talkies and radios to monitor law-enforcement chatter. So far this year, federal agents have Some are remote, but others are near raided 487 pot farms on forest-service popular tourist sites, such as a pot farm land, where they destroyed 2.6 million discovered late last month in California's marijuana plants, seized 138 firearms Sequoia National Park, a half-mile from a and made 369 arrests on felony drug 2009 States reporting drug trafficking cave famed for its crystal formations. charges. activity in national forests The pot farms are not fly-by-night operations. Growers cut down trees and terrace canyons to create Portions of this article came from the following sources: http://online.wsj.com/article/SB125193614108781629.html, http://www.sacbee.com/ourregion/story/2195235.html Did You Know ?? Psychemedics washes the hair samples that we receive for testing longer than you wash your clothes at home! The sample undergoes an extensive wash process, using six separate wash solutions with a total processing time of 3 hours and 45 minutes. Peer-reviewed scientific studies have shown that this extensive wash procedure enables our laboratory to remove or account for external contamination. Psychemedics’ wash procedures are the most extensive in the industry. We can tell the difference between ingestion and external contamination, and we can testify conclusively in court.
  • 4. PSYCHEMEDICS C O R P O R A T I O N Superior Detection of Drug Abuse PSYCHEMEDICS CLIENT SERVICES INFO: Client Services hours: 6:00 AM—5:30 PM PST Monday – Friday 5832 Uplander Way Culver City, CA 90230 Phone: 800.522.7424 Fax: 800.643.2354 About Psychemedics Psychemedics was established in 1987 to provide testing for drugs of abuse using hair analysis, and has been successfully operating for over 20 years. Thousands of corporations currently rely on Psychemedics’ patented hair analysis technology for their pre-employment and employee drug screening. Psychemedics is headquartered in Boston and has offices in Dallas, Chicago, Los Angeles and Las Vegas. Our Laboratory is located in Culver City, CA. Psychemedics is a publicly-held corporation listed on NASDAQ under the ticker symbol PMD.