Purdue Pharma's Implements Electronic Controlled-substance Ordering

Deploys nuBridges solution to meet strict DEA regulations for completely paperless transactions

Deploys nuBridges solution to meet strict DEA regulations for completely paperless transactions

Atlanta — July 13, 2006 — Purdue Pharma has reached a major milestone for the pharmaceutical manufacturing industry by successfully completing its first electronic transaction for controlled substance. The transaction, completed by using the nuBridges e222 Controlled Substance Ordering System (CSOS) solution, is one of the first of its kind by a pharmaceutical manufacturer.

nuBridges said that e222 CSOS, which adheres to the Drug Enforcement Administration's (DEA) strict security requirements for CSOS, manages all the order and customer verification steps necessary in the electronic workflow. The solution was originally created by iSoft, acquired by nuBridges in May.

The Drug Enforcement Administration's CSOS regulation requires that the chain of custody must be verified and documented at every step in the transaction process. The e222 form, which allows companies to meet the standards but conduct business electronically, was first allowed by the DEA in 2005.

"This is a pivotal moment for Purdue and for controlled substance pharmaceutical manufacturing as a whole," said Michael Celentano, associate director for supply chain systems at Purdue. "With nuBridges e222 solution, we can reap the benefits of electronic CSOS compliance, knowing that our processes are secure, scalable and extremely efficient."

Purdue and its wholesale customers, Value Drug and H. D. Smith, installed the nuBridges e222 solution, facilitating secure communication among all parties, streamlining order processing and ultimately improving customer service.

Secure, Efficient and Cost-Effective

A study by the DEA found that pharmaceutical companies and distributors can gain significant efficiencies and reduce costs with electronic processing over more traditional paper-bound models. According to the report, processing a single order via paper can cost up to $60, while electronic processing averages $6 and can be completed in real-time.

Prior to the expansion of CSOS to include electronic processing, buyers were constrained by a 10 line-item limit for each paper-based order. Orders in excess of 10 lines required the processing of multiple forms. Now, with e222, companies can process all Schedule I and II controlled substances purchases on a single electronic form, helping partners meet critical supply needs, optimize ordering across the network and improve inventory management, according to nuBridges.

According to nuBridges, e222 CSOS application is one of the industry's first to be certified according to strict DEA requirements. The software is designed to provide high levels of integrity at every step in the process, offering message encryption that ensures only authorized recipient can access content; digital signatures that assure identity, including return receipts; audit trails that account for all stock received, distributed or disposed of; and a scalable, secure communications engine.

"Pharmaceutical companies have great responsibilities: preventing the diversion of legitimate pharmaceutical drugs into illegal channels and ensuring sufficient supply for legitimate medical use," said Bob Geiger, vice president of enterprise solutions at nuBridges. "Purdue is raising the standard on this mandate — embracing technology that makes it much easier for them to achieve both objectives."

Additional Articles of Interest

— What do CEOs want from their supply chains, and is Supply Chain delivering? Read more in "The Supply Chain Disconnect," the Executive Memo column in the April/May 2006 issue of Supply & Demand Chain Executive.

— Stryker Instruments achieved success in inventory optimization by taking a no-frills approach and relying on collaborative supplier relations. Read more in "Keeping Supply Chain Transformation Simple," the Best Practices case study in the April/May 2006 issue of Supply & Demand Chain Executive.