BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  AB 1727
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          CONCURRENCE IN SENATE AMENDMENTS
          AB 1727 (Rodriguez)
          As Amended June 15, 2014
          Majority vote
           
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          |ASSEMBLY:  |76-0 |(May 19, 2014)  |SENATE: |35-0 |(June 30,      |
          |           |     |                |        |     |2014)          |
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           Original Committee Reference:    HEALTH  

           SUMMARY  :  Allows donations to a county voluntary drug repository  
          and distribution program of some prescription drugs under a  
          federal Food and Drug Administration (FDA) Risk Evaluation and  
          Mitigation Strategies (REMS).  This bill would allow drugs to be  
          donated if not prohibited by the REMS and if the drug is  
          dispensed in accordance with the REMS.  

           The Senate amendments  clarify that a drug may not be donated if  
          this transfer is prohibited by the REMS and if the drug is  
          dispensed in accordance with the REMS.  

           FISCAL EFFECT  :  None

           COMMENTS  :  According to the author, this bill is needed to  
          strengthen patient protections and ensure patients that are  
          using drugs with serious side effects have access to the  
          required monitoring procedures.  The author notes existing law  
          governing county surplus drug collection and distribution  
          programs does not prohibit medications which are mandated by the  
          FDA to have a REMS from being donated to and dispensed from drug  
          repository programs.  REMS programs imposed by the FDA require  
          pharmaceutical manufactures to track prescriptions from the  
          doctor, through the pharmacy, and to the patient in order to  
          minimize serious side effects.  The author argues allowing  
          pharmacies that participate in a repository program to receive  
          and re-distribute these types of drugs undermines the safety  
          precautions established by REMS programs. 

          Counties that adopt an ordinance to establish a voluntary drug  
          repository and distribution program in California must also  
          establish eligibility for medically indigent patients who may  
          participate in the program free of charge; develop a formulary  
          of appropriate medications for the program; provide for the  








                                                                  AB 1727
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          proper safety and management of any medications collected by and  
          maintained under the authority of a participating licensed  
          pharmacy; and, protect the privacy of individuals for whom the  
          medication was originally prescribed.  Controlled substances,  
          i.e., prescription drugs with the potential for abuse, and  
          medication in the possession of a patient or any individual  
          member of the public are not eligible for donation.  

          Drugs that are dispensed under the program are required to be in  
          a new and properly labeled container that is specific to the  
          eligible patient.  In addition, donated drugs are required to be  
          physically separated from the participating pharmacy's other  
          drug stock for purposes of inventory, accounting, and  
          inspections.  Pharmacies must also keep complete records of the  
          acquisition and disposition of medication donated to and  
          dispensed under the program.  Lastly, a participating pharmacy  
          is required to follow the same procedural drug pedigree  
          instructions for donated drugs as it would follow for drugs  
          purchased from a wholesaler or directly from a manufacturer.   
          Only Santa Clara County has established a voluntary drug  
          repository and distribution program.  

          According to the FDA's Internet Web site, approximately 65 drugs  
          have a REMS although not all REMS prohibit inventory transfer.   
          A REMS may be required by the FDA as part of the approval of a  
          new product, or for an approved product when new safety  
          information arises. REMS are a safety strategy to manage a known  
          or potential serious risk associated with a medicine, and to  
          enable patients to have continued access to such medicines by  
          managing their safe use.  Since medicines are very different  
          from each other, REMS for each medicine is also different.  REMS  
          can be required for a particular drug, or for an entire drug in  
          a class. 

          REMS can require additional information to be provided to  
          patients (such as an information guide), a communication plan to  
          support implementation of the REMS (such as providing  
          information to health care providers and professional medical  
          societies about the risks involved in using the drug drug) and a  
          timetable for determining the effectiveness of the safety  
          measures in the REMS.  A REMS can also include "Elements to  
          Assure Safe Use," which requires specific actions by health care  
          providers prior to ordering or dispensing a drug (such as  
          requiring certification by health care providers or pharmacists  
          in order to prescribe or dispense the drug), limiting the drug  








                                                                  AB 1727
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          to only certain settings, requiring patient monitoring when on  
          the drug, or requiring the patient be enrolled in a registry.

          Celgene Corporation (Celgene) supports this bill because it will  
          help provide safety to both patients and their families and  
          comply with the strict controlled distribution guidelines for  
          various drugs that require the manufacturers to track each  
          prescription from the doctor, through the pharmacy, to the  
          patient to minimize the risk of fetal exposure.  Celgene notes  
          these risk management programs are an integral part of the FDA  
          approval and are designed to minimize the risk of fetal  
          exposure.  Celgene argues that allowing pharmacies to  
          participate in a repository program to receive and redistribute  
          these types of drugs undermines the safety precautions  
          established by the FDA program.  The Pharmaceutical Research and  
          Manufacturers of America (PhARMA) support this bill because it  
          will protect consumers.  According to PhARMA, concerns about  
          possible fetal exposure renders these medications unsuitable for  
          redistribution.  They note that other states have enacted  
          similar controls over products which must adhere to strict FDA  
          guidelines on distribution.  

          There is no opposition on file.
           

          Analysis Prepared by  :    Dharia McGrew / HEALTH / (916) 319-2097  



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