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.

1. What You Need to Know about the
Drug Quality Security Act (DQSA)
By LauraM. Olson
DirectorofSales and Marketing
InitialImplementation Phases

2. DQSA Policy Background
New regulation was needed to:
• Address threats to patient safety and security
• Address documented history of counterfeit product
• Improveeffectiveness of product recalls
• Provide a uniform policy nationwide

3. New U.S. Federal law H.R. 3204,the DrugQuality Security Act (DQSA) also knownas the DrugSupply-ChainSecurity
Act (DSCSA)
• Signedby President Obama -goes into effect January1,2015
• 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, imagingproducts, veterinarymedicine.
About the DQSA

4. Whois Covered?
• Manufacturers
• Repackagers
• Wholesale Distributors
• ThirdParty Logistics Providers
• Dispensers
Special note: an individual entity canoperate in morethan one capacity
About the DQSA

5. • FDA starts regulatingthe pharmaceutical supply chainwith implementation of this law
• This is the first time the FDAhas been given sweeping oversight of the drugsupply chain
• Companies need to work out technology andprocess issues related to the implementation of phase 1 of
Title IIof DQSA
About the DQSA

6. DQSA Covers:
• Traceability requirements generally apply to each product and transaction
• Product= prescription drugs in finisheddosage form intended for humanuse
• Transaction= transfer of product between persons inwhich a changeof ownership occurs
About the DQSA

7. What is Exchanged:
• Transaction information (TI)
• Transaction history(TH)
• Transaction statement (TS)
About the DQSA

8. Terminology
• TI=Transactioninformation
• TH=Transactionhistory
• TS=Transactionstatement
• Dispensers:
Retail pharmacies and hospital pharmacies
Group of chain pharmacies undercommonownership &control
Affiliated warehouses or distribution centers
Anyperson legally authorizedto dispense or administer prescription drugs
and theiraffiliated warehouses or distribution centers undercommon
ownership orcontrol

9. Terminology
Dispensersthat act as a wholesale distributor are requiredto comply with wholesaler responsibilities.
This provision also applies to other supply chainentities.

10. Terminology
Authorized Trading Partners
Must havevalid registration, federal or state licenserequired by DQSA
Entities that transfer ownership arerequired to state that they are“authorized as requiredunderthe” DQSA
TransferringEntities must provide applicable license numberor registration in thetransaction statement

11. Product Identification
SNI=Standard Numerical Identifier
Set of characters or numbersthat is used to provide a uniqueidentification each
package or homogenous case composed of the National DrugCode corresponding
to the specific product and respective package configuration combined with
a uniqueserial number(alphanumeric) with a maximum of 20characters.

12. Product Identification
Package
Defined as the“smallest individual saleable unit of a product for distribution by a
Manufactureror Repackager that is intended by theManufacturerfor ultimate sale
to the Dispenser of suchproduct”.
21U.S.C. §360eee(11)

13. Product Identification
ProductIdentifier
This is a GS-1compliant standardized graphic that includes:
• Inboth machine-readabledata carrier and humanreadable form:
Lot number
Expiration date of theproduct
Standardized numerical identifier

14. For Pharmaceutical Manufacturers
Product trackingat lot level:
• Must provide/receive transaction history, information &statements prior to orat the time of changeof ownership of
a drug product
• Provide a list of transaction information of all changesof ownership going back to manufacturer
January 1,2015Timeline:

15. For Dispensers
January 1, 2015:
• Authorizedtrading partners only
Initial Timeline:

16. Verification of product & transactionsin the case of suspected product:
• Must beable to validate product with partnersas well as transaction history
• Must havesystems inplace to support investigating suspect products
• Must havesystems to notify FDA & all immediate trading partners about suspect product
For Pharmaceutical Manufacturers
January 1,2015Timeline:

17. Request for information
• When requested, must be able to provide transaction info, history & statements for product within 48hours
of request
For Pharmaceutical Manufacturers
January 1,2015Timeline:

18. November 27,2017Timeline:
For Pharmaceutical Manufacturers
Product Identifiers: Serialization
• All drugproducts are required to beencoded with a uniqueproduct identifier that must beat thesmallest saleable
unit
• Without this uniqueidentifier, downstream partnersmay not purchasethe drug product

19. November 27,2017Timeline:
For Pharmaceutical Manufacturers
Package Level Verification
• Drugproducts must beable to beverified at the package level SNI(standardized numericalidentifier)

20. November 27,2017Timeline:
For Pharmaceutical Manufacturers
Request for Verification
• Requiredresponse time for drugproduct verification by a trading partner for a product that is in the possession of
the trading partner
• 24hoursto respond
• Drugproduct identifier including SNI

21. Contact Us
800.933.2839
Onlinedemonstration
marketing@datexcorp.com
Web chat
Datex Corporation
@Datexcorp
www.DatexCorp.com