Pharmaceutical Industry & Distribution II

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Questions and Answers

What is the time frame for data aggregation and reporting in the new legal framework for reimbursement for orphan drugs?

  • 30 days for data aggregation and 30 days for reporting
  • 30 days for data aggregation and 110 days for assessment (correct)
  • 30 days for data aggregation and 6 months for reporting
  • 60 days for data aggregation and 110 days for assessment

Which stakeholder is involved in the appraisal process for orphan drug reimbursement?

  • Only healthcare professionals
  • Government only
  • Pharmaceutical companies only
  • Patients advisory groups (correct)

What is the focus of the committee's criteria for evaluating orphan drugs?

  • Efficacy of the drug alone
  • Cost-effectiveness solely
  • Individual patient needs exclusively
  • Societal perspective and impact (correct)

Which option is NOT a criterion considered in the appraisal process for orphan drugs?

<p>Individualized treatment options (A)</p> Signup and view all the answers

What is the role of MoH in the appraisal process for orphan drug reimbursement?

<p>To oversee the entire appraisal process (B)</p> Signup and view all the answers

Which medicinal products are excluded from the safety stock obligation?

<p>Seasonal vaccines (C), Radiopharmaceuticals (D)</p> Signup and view all the answers

What is one condition under which an export ban on medications is possible?

<p>The lack of the drug would endanger patient health. (A)</p> Signup and view all the answers

What is a key factor that affects the re-exportation of drugs?

<p>The price of the drugs in the Czech Republic (A)</p> Signup and view all the answers

Which distribution model involves direct supply to hospitals?

<p>DTH (A)</p> Signup and view all the answers

What is the typical profit margin associated with drug distribution?

<p>2 - 4% (C)</p> Signup and view all the answers

Which of the following is NOT listed as a product where safety stock is not required?

<p>Chemotherapy agents (A)</p> Signup and view all the answers

Which entity provides information on the availability of medicinal products?

<p>SÚKL (D)</p> Signup and view all the answers

Why is a blanket ban on drug exports not feasible?

<p>It violates the EU's principle of free trade. (B)</p> Signup and view all the answers

What is a key factor influencing the broad launch of innovative medicines?

<p>Budget impact (B)</p> Signup and view all the answers

What is the purpose of the temporary reimbursement pathway for highly innovative drugs?

<p>To provide immediate market access (C)</p> Signup and view all the answers

What is a consequence of a more restrictive definition of unmet medical need?

<p>It affects the definition of high morbidity/mortality. (D)</p> Signup and view all the answers

What is the duration of the temporary reimbursement agreement for highly innovative drugs?

<p>3+2 years (A)</p> Signup and view all the answers

Which of the following is a condition for exceptional reimbursement under §16?

<p>It applies only to exceptional individual cases (A)</p> Signup and view all the answers

What is required for all products under shortage prevention plans?

<p>Advance notification of shortages. (B)</p> Signup and view all the answers

Which statement is true regarding the WTP threshold for orphan drugs?

<p>Orphan drugs do not require WTP thresholds (B)</p> Signup and view all the answers

Which of the following is NOT a focus of the new pharmaceutical legislation?

<p>Reduction of research funding. (B)</p> Signup and view all the answers

How long do budget caps typically last for new innovative medicines?

<p>3-5 years (C)</p> Signup and view all the answers

What role does regulatory data protection (RDP) play in pharmaceutical legislation?

<p>It encourages innovation by protecting data. (B)</p> Signup and view all the answers

Who has a direct involvement in the appraisal process for innovative reimbursement pathways?

<p>Professional medical associations (A)</p> Signup and view all the answers

What can cause the European Medicines Agency (EMA) to reject new medicines?

<p>Environmental Risk Assessment results. (C)</p> Signup and view all the answers

What is the purpose of adjusting maximum prices in drug reimbursement?

<p>To prevent surcharges for health insurance. (B)</p> Signup and view all the answers

What is a potential alternative to a local clinical registry in the reimbursement process?

<p>Real-world evidence (RWE) collection (B)</p> Signup and view all the answers

Which of these adjustments is aimed at dealing with drug shortages?

<p>Simplification of regulatory rules. (D)</p> Signup and view all the answers

What is the primary objective of the incentives in the pricing system for drugs?

<p>To adjust reimbursement rates appropriately. (D)</p> Signup and view all the answers

What obligation does the holder have regarding the supply of a product after it has a shortage for one month?

<p>Supply the market after a shortage of 1 month if the product is reimbursed or has a maximum price (D)</p> Signup and view all the answers

Under what condition is the holder exempt from the obligation to supply during a shortage?

<p>If the product is not yet marketed for 12 months (D)</p> Signup and view all the answers

What types of products are generally exempt from the ‘Safety Stock’ obligation according to the decree?

<p>Gene therapy and blood products (C)</p> Signup and view all the answers

What does the 'Limited Availability' symbol indicate?

<p>The product is subject to special reporting and may have a supply risk (B)</p> Signup and view all the answers

What is the consequence for distributors that favor specific pharmacies when ordering medicines?

<p>They are prohibited from favoring any pharmacy in their orders (B)</p> Signup and view all the answers

When must REG and DIS reports be submitted?

<p>By the 5th day of the following month (A)</p> Signup and view all the answers

What must distributors keep as a reserve stock for certain products starting from January 1?

<p>One month of supplies for each product (A)</p> Signup and view all the answers

What agency is responsible for labeling products with the 'Limited Availability' symbol?

<p>SÚKL (D)</p> Signup and view all the answers

What role do medical representatives play in the innovative farm-industry?

<p>Sell medicinal products and connect with healthcare professionals. (A)</p> Signup and view all the answers

What is the main focus of SÚKL's evaluation process regarding medicines?

<p>Assessing the risk of insufficient supply and substitutability of drugs. (C)</p> Signup and view all the answers

Which function is responsible for ensuring all activities meet legal and ethical standards?

<p>Legal &amp; Compliance. (B)</p> Signup and view all the answers

What is a key responsibility of brand management in the innovative farm-industry?

<p>Shaping the brand throughout the product life-cycle. (C)</p> Signup and view all the answers

What type of function is described as supportive, non-branded, and non-commercial?

<p>Supportive function. (C)</p> Signup and view all the answers

In the innovative farm-industry, omnichannel campaigns are primarily prepared by which role?

<p>Brand management. (B)</p> Signup and view all the answers

Which entity's evaluations take into account the substitutability of particular drugs?

<p>SÚKL. (D)</p> Signup and view all the answers

The role of sales in the innovative farm-industry typically includes what?

<p>Engaging directly with healthcare providers to sell medicinal products. (B)</p> Signup and view all the answers

Flashcards

Permanent Reimbursement Pathway

A reimbursement pathway for innovative medicines with a price below a certain threshold (45k EUR/QALY) and a budget impact assessment (SF/HICs methodics) for broader launch. This pathway includes budget caps for 3-5 years and restrictions on target patient populations and specialized centers.

Innovative Reimbursement Pathway

A temporary reimbursement pathway (3+2 years) for highly innovative drugs, regardless of their cost-effectiveness. It involves an agreement with payers on the budget impact and a local clinical registry (optional) to collect real-world evidence (RWE).

Orphan Drug Reimbursement Pathway

A reimbursement pathway for orphan drugs (rare diseases) with no specific cost-effectiveness threshold. It involves a separate process for decision-making and direct involvement of patients (PAG) and professional medical associations.

ICER (Independent Cost-effectiveness Evaluation)

An independent evaluation group that assesses the cost-effectiveness of new drugs and provides recommendations for reimbursement.

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Cost-Effectiveness Threshold (WTP)

A measure of the cost-effectiveness of a drug, calculated as the cost per quality-adjusted life year (QALY). A QALY is a year of life in perfect health.

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Budget Impact Assessment (BIA)

A method for assessing the budget impact of a drug, taking into account the potential cost savings and increased efficiency.

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Patient Advisory Group (PAG)

A group of patients who provide input and feedback on drug development, clinical trials, and access to treatment.

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Real-World Evidence (RWE)

Real-world evidence (RWE) is collected from clinical practice to complement data from clinical trials and assess the long-term effectiveness and safety of drugs.

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IPN (Individual Patient Named Program)

A program that allows for the reimbursement of expensive, rare drugs on a case-by-case basis, considering factors such as patient need, effectiveness, and cost-effectiveness.

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New Legal Framework for Orphan Drug Reimbursement

A set of regulations and guidelines defining the reimbursement process for drugs designated as 'orphan drugs,' which are intended for rare diseases. The framework aims to ensure these drugs are accessible to patients who need them.

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Orphan Drugs

A specific drug category that targets uncommon diseases with a limited number of affected patients. These drugs are often developed by pharmaceutical companies to fill unmet medical needs.

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Drug Reimbursement Appraisal Process

The process of reviewing and evaluating a new drug for potential reimbursement based on clinical evidence, patient need, cost-effectiveness, and societal impact. The evaluation involves various stakeholders, such as patients, healthcare professionals, payers, and government representatives.

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Why is the US attractive for R&D?

The United States is considered more attractive for pharmaceutical research and development due to factors such as a strong regulatory environment, robust intellectual property protection, and a large, well-funded healthcare system.

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Pharmaceutical Sustainability

The ability of the pharmaceutical industry to develop, manufacture, and distribute drugs effectively, meeting patient needs while minimizing environmental impact.

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Drug Shortages

A situation where a drug needed by patients is not available in sufficient quantities. Shortages can be caused by various factors, including manufacturing issues, supply chain disruptions, and regulatory challenges.

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Regulatory Data Protection (RDP)

This legal protection grants exclusive rights to a company to sell a drug during a specific period, preventing competition from generic versions.

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Cost-Effectiveness Evaluation

The process of evaluating whether a new drug is cost-effective, considering its clinical benefits and its price compared to other treatment options.

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Safety Stock

An obligation for manufacturers to maintain a certain amount of their product in stock to prevent shortages in the market.

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Limited Availability Symbol

A label applied to products with limited availability, indicating potential shortages.

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Reserve Stock List

A list of products where distributors must hold a reserve stock to ensure continuous supply to pharmacies.

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Stock Level Reporting

The obligation of manufacturers, distributors and pharmacies to report their stock levels of products with the 'Limited Availability' symbol.

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Re-exportation

The act of exporting a product that is in short supply in the origin country, potentially causing shortages.

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Re-exportation Ban

A regulation prohibiting the distribution of products with the 'Limited Availability' symbol outside of the intended market.

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Sister Company Distribution

Pharmaceutical companies' practice of supplying their sister companies with products, potentially compromising the transparency of stock reports.

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Distribution Reports (DIS)

A requirement for distributors to submit reports on the quantities of medicine distributed and the beneficiaries of those distributions.

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What does SÚKL evaluate?

SÚKL evaluates the availability of medicines in Czech Republic and assesses the risk of shortages. They consider if a drug can be replaced with another similar medicine.

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What are the main functions in a pharmaceutical company?

Sales and brand management are key functions in pharmaceutical companies, focusing on marketing and reaching healthcare professionals.

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What role does Legal and Compliance play in a pharmaceutical company?

Legal and Compliance ensures that all activities are legal and ethical.

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What does the EMA do?

The EMA (European Medicines Agency) is a European body responsible for the evaluation and supervision of medicines.

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What does the FDA do?

The FDA (Food and Drug Administration) is a U.S. government agency that regulates food, drugs, and medical devices.

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What is AIFP?

AIFP is the Association of Innovative Pharmaceutical Companies in the Czech Republic.

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what is ÄŒAFF?

ÄŒAFF is the Czech Association of Pharmaceutical Firms.

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What does the ČSÚ do?

The Czech Statistical Office collects and analyzes data on health care in the Czech Republic.

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What types of medications are exempt from safety stock regulations?

Certain medications, like seasonal vaccines and Covid treatments, are exempt from the required safety stock regulations due to their unique characteristics. This means they do not need to be kept in reserve by pharmacies and hospitals.

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What are DTH and DTP distribution models?

Direct to Pharmacy (DTP) and Direct to Hospital (DTH) models are alternative distribution pathways, allowing manufacturers to supply medications directly to pharmacies or hospitals, bypassing traditional wholesalers.

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What is the main goal related to medicine exports in the Czech Republic?

The Czech government aims to restrict the possibility of exporting medicines to other countries, primarily due to the risk of shortages for Czech patients.

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What is the practice of re-exporting medications?

Re-exporting medications involves purchasing them in a country with a lower price and selling them in a country with a higher price for profit. This practice often occurs with drugs where the Czech price is lower than the international price.

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Why is a complete ban on drug exports not feasible?

Although a complete ban on drug exports is desirable to ensure sufficient supply, it is prevented by the EU principle of free trade, which generally applies to medicines. Restrictions or bans are only possible for specific drugs that could endanger the health of patients in the Czech Republic.

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Who is involved in ensuring the availability of medicines in the Czech Republic?

The Czech Republic has a complex system to ensure the availability of medicines. This system involves collaboration between various institutions including the State Institute for Drug Control (SUKL) and the Ministry of Health.

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Where can you find information about the availability of medicines in the Czech Republic?

The State Institute for Drug Control (SUKL) provides information related to the availability of medicines through online resources. Users can access this information directly on the SUKL website.

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What is the role of the Ministry of Health in the Czech Republic's drug availability system?

The Ministry of Health of the Czech Republic is responsible for providing information about the availability of medicines and also plays a role in enforcing export bans.

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Study Notes

Pharmaceutical Industry & Distribution

  • The presentation discusses the pharmaceutical industry and distribution within the context of social and clinical pharmacy.
  • It covers topics such as industry innovation, orphan drugs, EU regulations, drug shortages, distribution, and roles/job functions within the industry.

Content

  • The presentation will cover industry innovation and generic drugs.
  • It will also look into orphan drugs, EU pharma legislation, drug shortages, and distribution, as well as roles within the pharmaceutical industry.

Research and Development - Farm Industry

  • The average time from molecule synthesis to launch of a new innovative medicine is 12-13 years.
  • The average cost of developing a new medicine is approximately $2.5 billion.
  • Only 1 in 10,000 molecules/substances will be successful in the market.
  • The development process includes phases such as screening, patent application, pre-clinical development, and clinical trials.

Costs of Drug Development

  • The cost of developing one single drug exceeds 30 billion koruna.
  • The stages of research, discovery, pre-clinical testing, clinical trials, and regulatory approval have varying timeframes and costs.
  • There are various stages of drug development, each with their own associated costs and time commitments.

Pharmaceutical Spending in Healthcare

  • In the period 2017-2021, the proportion of expenditure on pharmaceuticals in healthcare decreased.
  • The figures show a downward trend in the proportion of pharmaceutical costs within total healthcare spending for the years 2017 to 2021.

Roles for Original and Generic Companies

  • Original drug companies bring innovation and ensure real innovation reaches patients.
  • They often use tools like risk-sharing and evidence-based reimbursement strategies.
  • Generic companies focus on significant price reductions, extensions for all patients, and quick generic entries to the market. Their tools include reference prices, access provisions, and volume guarantees.

Orphan Drugs

  • Orphan drugs are for rare diseases, with prevalence less than 5 in 10,000 people.
  • The European Medicines Agency (EMA) is central in facilitating the development and authorisation of medicines for rare diseases.
  • The development time takes a maximum of 90 days from validation.

Availability and Reimbursement of Orphan Drugs

  • Between 2015 and 2020, only 57% of EMA-registered orphan drugs were delivered to Czech patients, while only 29% were officially reimbursed.
  • Reimbursement schemes differ, with varying success rates for orphan medicinal products.
  • As of January 2022, a new legal framework for orphan drugs facilitates innovative medicines, primarily focusing on ICER (Incremental Cost-Effectiveness Ratio) below 45k EUR/QALY.
  • Innovative reimbursement pathways for innovative drugs are also provided.
  • The framework also includes exceptional reimbursement provisions.

Drug Shortages

  • Drug shortages were a significant issue in 2022 and require systemic solutions.
  • There is no universal solution; rather, the focus is on preventing and mitigating shortages through various regulatory and industrial measures.

Dealing with Drug Shortages

  • Simplifying regulations, improving pricing and reimbursement models, and streamlining procedures are key to addressing drug shortages.
  • Rationalizing drug supply chains and protecting intellectual property are also important to encourage product diversification and availability.

Amendment to the Act on Pharmaceuticals

  • The amendment introduces a "safety stock" requirement for products that could face supply issues, while exemptions exist for certain products.

List of Medicinal Products

  • There is a list of products deemed exempt from the safety stock requirement, encompassing seasonal vaccines, Covid medications, and diagnostic/radiopharmaceutical agents.

SÚKL Information on Availability

  • The State Institute for Drug Control (SÚKL) offers information on medicinal product availability.

Ministry of Health Information

  • The Ministry of Health provides information on availability and export bans on medicinal products.

Distribution

  • Drug distribution in the Czech Republic involves direct distribution to hospitals and pharmacies. There are restrictions on exporting and re-exporting medicinal products.
  • Several distribution companies are highlighted, indicating a network of distribution channels in the country

Re-exports

  • Re-export of drugs occurs when the Czech price is lower than abroad.
  • Legal restrictions on re-exports exist but specific restrictions for certain medicines are possible if justified by insufficient domestic supply issues and patient health concerns.

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