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Leapfrogging into the injectables
drug market;
The case and pharmacoeconomics
of ready-to-use (RTU) drugs
James G. Boudreau
Kelowna Sales Meeting
June 10, 2014
FACTS
• Medication errors kill 7,000 people each year in the
United States To err is human, 1999
• Intravenous medication errors are nearly 3 times as
likely to cause harm or death compared with other
drugs routes (3% vs. 1.2%)
Am J Health-Syst Pharm 2008;65:2367-79
• The risk is related to the complexity of the process
and is froth with potential errors at every step
Risk = probability x consequences
6 July 2016 Kelowna Sales Meeting 2
Intravenous medication:
a complex process
6 July 2016 Kelowna Sales Meeting
3
Intravenous medication:
errors at each stage
6 July 2016 Kelowna Sales Meeting
4
Preparation errors
Simulation study
6 July 2016 Kelowna Sales Meeting 5
• Mean rate: 6.5% (n=28)
28%
52%
20%
Selection error
Dilution error
Quantity error
Garnerin Ph, Eur J Clin Pharmacol 2007;63:769
Preparation errors
Real-life study
• Unused syringes in anesthesiology
>± 10%: 29% >± 50%: 8% >± 100%: 4%
6 July 2016 Kelowna Sales Meeting
6
Stucki C, HUG, 2009
Calculation errors
6 July 2016 Kelowna Sales Meeting
7
• Nurses
26.7% (n=30)
• Anesthesiologists
10.4% (n=28)
Garnerin Ph, Eur J Clin Pharmacol 2007;63:769
Microbial contamination
6 July 2016 Kelowna Sales Meeting
8
• Syringes contamination
• Intensive care units
in 6 hospitals (A-F)
• Pharmacy aseptic
unit (Ph(A))
Care Med 2002;30Van Garfhorst J, Crit :833-6
Houston, we’ve got a problem!
6 July 2016 Kelowna Sales Meeting
9
Canadian approach to safety
Standardizing injectable drug dilutions and labelling
6 July 2016 Kelowna Sales Meeting 10
Ready-to-use (RTU) preparations
From the industry
From the hospital pharmacy
Production Plant (GMP)
Outsourcing (Mixing/Compounding)
Aseptic Preparation
(Batching/Patient specific)
Ready-to-use (RTU) preparations
From the industry
Ready-to-use
• Clindamycin 50 mL bag
(Sandoz)
• 600mg & 900mg
• Potassium Chloride (KCl) bag
(Baxter)
• 500 & 1000 mL
• Cefazolin 100g bag (PPC)
• 2 liters
• Heparin bag (B Braun)
• 250 & 500 mL
6 July 2016 Kelowna Sales Meeting
11
Outsourcing
• Pre-filled syringes
• Reconstitute powder vials
for:
• Bags, syringes,
intermate, pump
cassettes, etc.
• Prepare batch and/or patient
specific intravenous drugs
Ready-to-use (RTU) preparations
From the hospital pharmacy
• Collection of customer needs
• interested clinical areas
• list of potential drugs
• Risk assessment priority list
(probability of occurrence x consequences)
• Feasibility study
• Stability assessment
• Starting batch production
• Research industrial partnership
6 July 2016 Kelowna Sales Meeting 12
Ready-to-use (RTU) preparations
Which is safer?
From the industry
• Good manufacturing practices
(GMP)
• Cleanrooms, laminar flow hoods,
operator qualification
• Documentation (standardized
production protocols)
• Working process (validation and
informatics)
• Quality control: standard operating
procedures (SOP)
• Traceability (whole process)
From the hospital pharmacy
• Lack of qualified personnel, room, funds,
and time
• Shorter shelf life due to drug stability
validation and testing
• Production protocols and procedures
(chemical)
• Computer-assisted production
management (chemical)
• Clean environment (microbiological)
• Specifically trained operators
(chemical, microbiological)
6 July 2016 Kelowna Sales Meeting
13
6 July 2016 Kelowna Sales Meeting
14
• Operator ID
• password, facial recognition,
fingerprint
• Gravimetric weight
selection
• dosing by weight vs. volume
• Material ID
• barcode, photo label
identification
• Traceability
• metrics software
Computer-assisted production
Pharmacoeconomics
Hospital start-up costs for ready-to-use syringes
Investment costs
• Cleanroom Class C (ISO 7)
• (20 m2 x $12,000/m2) $240,000
• Filling machine
• Baxter Intellifill $600,000
• i.v.STATION $700,000
• Total (depending on filling system) $940,000
• 5 year amortization $188,000/year plus
• 5 year amortization w/o cleanroom $140,000/year plus
6 July 2016 Kelowna Sales Meeting
15
Pharmacoeconomics
Hospital start-up costs for ready-to-use syringes
Development costs (stability study)
• Development and validation of a quantitative stability-
indicating analytical method
• Stability studies
• Total cost $14,800
• Cost / syringe $0.59
(5,000 syringes/year over 5 years)
6 July 2016 Kelowna Sales Meeting
16
Pharmacoeconomics
Hospital preparation costs of ready-to-use syringes
Production costs ($) (Phenylephrine 1mg conc./1mL size)
Batch size 1,000 2,000 Nurse
• Vial unit price (1mL) $1.23 $1.23 $1.23
• Hood materials $1.18 $1.18
• Labour $1.48 $1.48 *$5.00
• Quality control $0.20 $0.10
– Total $4.09 $3.99 $6.23
6 July 2016 Kelowna Sales Meeting
17
?
?
* 5 minutes/syringe
(Hecq JD, Ann Pharm Françaises 2011;69:30-7)
Pharmacoeconomics
Hospital benefits of ready-to-use syringes
6 July 2016 Kelowna Sales Meeting
18
Risk Avoidance
• Pre-filled Phenylephrine syringes produced 400,000/year
• Error Rate 5% 20,000/year
• Ratio errors: serious ADE <1% 200/year
Bates D, J Gen Intern Med 1995;10:199
Cost per serious ADE $6,934 >$1,00,000/year
Leape L, JAMA 1999;281:267
Cost-saving
• Syringes discarded in anaesthesiology 50%
Weinger MB, J Clin Anesth 2001;13:491-7 $13.50/per syringe
Pharmacoeconomics
Bottom line
6 July 2016
Cost/syringe ($) (based on 400,000/year)
Pharmacy RTU Ward
• Investment $4.70
• Development $0.59
• Preparation $4.09 $6.23
• Risk management (safety) ? ?
• Cost-saving (waste) ? ?
Total (first 5 years) $9.38 $6.23
Kelowna Sales Meeting
19
5 years
Innovations for safety
Options
6 July 2016 Kelowna Sales Meeting
20
RTU syringes/bags
(CIVA)
Robotized distribution Automated
dispensing
Electronic prescription
and patient record
Bedside scanning
Computerization Automation Robotisation Industrialisation
Conclusion
• The preparation of drug injectables
in hospital units is not reliable
• Ready-to-use (RTU) drugs improves
patient safety by changing the
paradigm
• A high quality assurance system
(GMP) is essential to ensure patient
and worker safety.
• Quality is paramount in a hospital
setting as it will save time, money
and ultimately…lives!
6 July 2016 Kelowna Sales Meeting
21

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RTU Presentation - Sales Meeting June 2014

  • 1. Leapfrogging into the injectables drug market; The case and pharmacoeconomics of ready-to-use (RTU) drugs James G. Boudreau Kelowna Sales Meeting June 10, 2014
  • 2. FACTS • Medication errors kill 7,000 people each year in the United States To err is human, 1999 • Intravenous medication errors are nearly 3 times as likely to cause harm or death compared with other drugs routes (3% vs. 1.2%) Am J Health-Syst Pharm 2008;65:2367-79 • The risk is related to the complexity of the process and is froth with potential errors at every step Risk = probability x consequences 6 July 2016 Kelowna Sales Meeting 2
  • 3. Intravenous medication: a complex process 6 July 2016 Kelowna Sales Meeting 3
  • 4. Intravenous medication: errors at each stage 6 July 2016 Kelowna Sales Meeting 4
  • 5. Preparation errors Simulation study 6 July 2016 Kelowna Sales Meeting 5 • Mean rate: 6.5% (n=28) 28% 52% 20% Selection error Dilution error Quantity error Garnerin Ph, Eur J Clin Pharmacol 2007;63:769
  • 6. Preparation errors Real-life study • Unused syringes in anesthesiology >± 10%: 29% >± 50%: 8% >± 100%: 4% 6 July 2016 Kelowna Sales Meeting 6 Stucki C, HUG, 2009
  • 7. Calculation errors 6 July 2016 Kelowna Sales Meeting 7 • Nurses 26.7% (n=30) • Anesthesiologists 10.4% (n=28) Garnerin Ph, Eur J Clin Pharmacol 2007;63:769
  • 8. Microbial contamination 6 July 2016 Kelowna Sales Meeting 8 • Syringes contamination • Intensive care units in 6 hospitals (A-F) • Pharmacy aseptic unit (Ph(A)) Care Med 2002;30Van Garfhorst J, Crit :833-6
  • 9. Houston, we’ve got a problem! 6 July 2016 Kelowna Sales Meeting 9
  • 10. Canadian approach to safety Standardizing injectable drug dilutions and labelling 6 July 2016 Kelowna Sales Meeting 10 Ready-to-use (RTU) preparations From the industry From the hospital pharmacy Production Plant (GMP) Outsourcing (Mixing/Compounding) Aseptic Preparation (Batching/Patient specific)
  • 11. Ready-to-use (RTU) preparations From the industry Ready-to-use • Clindamycin 50 mL bag (Sandoz) • 600mg & 900mg • Potassium Chloride (KCl) bag (Baxter) • 500 & 1000 mL • Cefazolin 100g bag (PPC) • 2 liters • Heparin bag (B Braun) • 250 & 500 mL 6 July 2016 Kelowna Sales Meeting 11 Outsourcing • Pre-filled syringes • Reconstitute powder vials for: • Bags, syringes, intermate, pump cassettes, etc. • Prepare batch and/or patient specific intravenous drugs
  • 12. Ready-to-use (RTU) preparations From the hospital pharmacy • Collection of customer needs • interested clinical areas • list of potential drugs • Risk assessment priority list (probability of occurrence x consequences) • Feasibility study • Stability assessment • Starting batch production • Research industrial partnership 6 July 2016 Kelowna Sales Meeting 12
  • 13. Ready-to-use (RTU) preparations Which is safer? From the industry • Good manufacturing practices (GMP) • Cleanrooms, laminar flow hoods, operator qualification • Documentation (standardized production protocols) • Working process (validation and informatics) • Quality control: standard operating procedures (SOP) • Traceability (whole process) From the hospital pharmacy • Lack of qualified personnel, room, funds, and time • Shorter shelf life due to drug stability validation and testing • Production protocols and procedures (chemical) • Computer-assisted production management (chemical) • Clean environment (microbiological) • Specifically trained operators (chemical, microbiological) 6 July 2016 Kelowna Sales Meeting 13
  • 14. 6 July 2016 Kelowna Sales Meeting 14 • Operator ID • password, facial recognition, fingerprint • Gravimetric weight selection • dosing by weight vs. volume • Material ID • barcode, photo label identification • Traceability • metrics software Computer-assisted production
  • 15. Pharmacoeconomics Hospital start-up costs for ready-to-use syringes Investment costs • Cleanroom Class C (ISO 7) • (20 m2 x $12,000/m2) $240,000 • Filling machine • Baxter Intellifill $600,000 • i.v.STATION $700,000 • Total (depending on filling system) $940,000 • 5 year amortization $188,000/year plus • 5 year amortization w/o cleanroom $140,000/year plus 6 July 2016 Kelowna Sales Meeting 15
  • 16. Pharmacoeconomics Hospital start-up costs for ready-to-use syringes Development costs (stability study) • Development and validation of a quantitative stability- indicating analytical method • Stability studies • Total cost $14,800 • Cost / syringe $0.59 (5,000 syringes/year over 5 years) 6 July 2016 Kelowna Sales Meeting 16
  • 17. Pharmacoeconomics Hospital preparation costs of ready-to-use syringes Production costs ($) (Phenylephrine 1mg conc./1mL size) Batch size 1,000 2,000 Nurse • Vial unit price (1mL) $1.23 $1.23 $1.23 • Hood materials $1.18 $1.18 • Labour $1.48 $1.48 *$5.00 • Quality control $0.20 $0.10 – Total $4.09 $3.99 $6.23 6 July 2016 Kelowna Sales Meeting 17 ? ? * 5 minutes/syringe (Hecq JD, Ann Pharm Françaises 2011;69:30-7)
  • 18. Pharmacoeconomics Hospital benefits of ready-to-use syringes 6 July 2016 Kelowna Sales Meeting 18 Risk Avoidance • Pre-filled Phenylephrine syringes produced 400,000/year • Error Rate 5% 20,000/year • Ratio errors: serious ADE <1% 200/year Bates D, J Gen Intern Med 1995;10:199 Cost per serious ADE $6,934 >$1,00,000/year Leape L, JAMA 1999;281:267 Cost-saving • Syringes discarded in anaesthesiology 50% Weinger MB, J Clin Anesth 2001;13:491-7 $13.50/per syringe
  • 19. Pharmacoeconomics Bottom line 6 July 2016 Cost/syringe ($) (based on 400,000/year) Pharmacy RTU Ward • Investment $4.70 • Development $0.59 • Preparation $4.09 $6.23 • Risk management (safety) ? ? • Cost-saving (waste) ? ? Total (first 5 years) $9.38 $6.23 Kelowna Sales Meeting 19 5 years
  • 20. Innovations for safety Options 6 July 2016 Kelowna Sales Meeting 20 RTU syringes/bags (CIVA) Robotized distribution Automated dispensing Electronic prescription and patient record Bedside scanning Computerization Automation Robotisation Industrialisation
  • 21. Conclusion • The preparation of drug injectables in hospital units is not reliable • Ready-to-use (RTU) drugs improves patient safety by changing the paradigm • A high quality assurance system (GMP) is essential to ensure patient and worker safety. • Quality is paramount in a hospital setting as it will save time, money and ultimately…lives! 6 July 2016 Kelowna Sales Meeting 21

Editor's Notes

  1. This presentation represents my opinions of how we could leapfrog into the Canadian injectables drug market at this time. I have borrowed liberally from many sources to make my case and they have been referenced. The references are principally US and European based. There is very little Canadian literature, on the Canadian injectables market. Si vous voulez poser des questions en français, je ferais de mon mieux pour vous respondre.
  2. First, the facts.
  3. It is a complex process and I’ll focus on the 3rd step of a 12 step process. Chances are that some of you may not know the well-known 5 rights of medication administration. 1. Right patient 2. Right medication 3. Right dose 4. Right route 5. Right time
  4. The 3rd step accounts for an average of 31% of all the errors in the 12 step process.
  5. That is not to say that errors don’t occur in the other steps. In this simulation study, there was a 20% quantity error rate; 28% selection error and a 52% dilution error rate.
  6. These are actual unused syringes from anesthesiology showing more than 50% of the unused syringes were under or over filled more than 8%
  7. Calculation errors
  8. Houston, we’ve got a problem.
  9. Hydromorphone 2mg/mL 10x1mL – annual volume 4,272,600 vials/ampoules $0.89 Dimenhydrinate 50mg/mL 10x1mL – annual volume 2,528,770 ampoules MORPHINE SO4 Inj 2mg/mL 10x1mLA - annual volume 1,069,460 ampoules
  10. 14,800/5,000/5 = $0.59 Keep in mind the numbers highlighted in blue
  11. Pharmacy Technicans’ salary average $30 an hour and they take an average of 3 minutes to compound a liquid. Registered nurses’ salary average $60 an hour and they take an average of 5 minutes to compound a liquid.
  12. 4,685 Euros*1.48= $6,934
  13. Slide 15 - $940,000 / 5 years / 400,000 = $4.70 Slide 16 - $14,800 / 5,000 / 5 = $0.59 Slide 17 - $1.23 + $1.18 + $1.48 + $0.20 = $4.09
  14. Other options are available but expensive and labor intensive