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Pharmitas’ Pseudoephedrine Scanner Pilot Could Lead To More Retailer Deals

This article was originally published in The Tan Sheet

Executive Summary

Pharmitas' pilot program of the software and database system it developed to electronically scan and track sales of pseudoephedrine-containing drugs is nearing completion and is generating interest from retailers looking for an easier method of complying with log-book requirements mandated by the federal Combat Meth Act, the firm says

Pharmitas' pilot program of the software and database system it developed to electronically scan and track sales of pseudoephedrine-containing drugs is nearing completion and is generating interest from retailers looking for an easier method of complying with log-book requirements mandated by the federal Combat Meth Act, the firm says.

"The pilot that we started ... has bore a lot of fruit and got us connected with other folks that like the solution and want to get it in place and we're pretty close to being able to announce those guys so it's been a wonderful experience for us," Chris Parsons, Pharmitas president and CEO, told "The Tan Sheet" Aug. 8.

The Bellevue, Wash.-based retail technology firm launched the pilot program of its scanning software with Bartell Drugs' Lynnwood, Wash., location in April (1 'The Tan Sheet' April 2, 2007, In Brief).

Scanning devices with Pharmitas' software read and decode driver's license barcodes and UPC product labels and its database records the information, "reducing the logging time from more than three minutes to about 13 seconds," according to the firm.

"We're just coming out of the pilot right now and hope to roll [the device] out in the quite near future to the rest of the Bartell chain," Parsons said.

The Bartell program "has gone very, very well for us and for Bartell and certainly has generated a lot of interest with other retailers that are looking for the same solution," he added.

The company also announced Aug. 8 its partnership with Hand Held Products to use Pharmitas' sales tracking software in its handheld data collection devices.

Pharmitas' software will be used with Hand Held's IK8570 and Dolphin 7900 scanners to track pseudoephedrine sales.

The devices enable rapid, omni-directional scanning of one- and two-dimensional barcodes and can be equipped with an integrated magnetic stripe reader, according to Pharmitas and Hand Held.

The launch of the device with additional pharmacy chains is coming "very, very soon," Parsons said, adding he expected to release more information on retail partnerships during the National Association of Chain Drug Stores' Pharmacy and Technology Conference Aug. 11-15 in Boston.

Wider Market Than PSE Sales

Pharmitas initially called its scanner system to track for PSE-containing product sales "SudaScan," but it has renamed the software Pharmitas Pharmacy Solution , expecting it will be applied to tracking sales of other products.

"We've moved away from the SudaScan name largely because what we found is that the technology that we've developed has larger applications outside of just the pseudoephedrine market so we wanted the name to reflect that as well," Parsons said.

He cited possibilities of other OTC products being moved to behind-the-counter sales to curb abuse, such as dextromethorphan cough-cold products and OTC night-time pain relievers such as McNeil's Tylenol PM .

Multiple state legislatures have proposed bills to place age limits, and a New York county has enacted an age limit, on DXM purchases due to the potential for abuse of the products (2 (Also see "First DXM Age Law Passes While Voluntary Restrictions Increase" - Pink Sheet, 21 May, 2007.), p. 4).

Another emerging trend in OTC medicine abuse is the manufacture of "cheese" heroin, a combination of heroin and diphenydramine, an ingredient found in Benadryl and antihistamine products (3 'The Tan Sheet' June 18, 2007, In Brief).

"I can say that once this framework was put in place for regulated over-the-counter products, what we've seen happening is there are many parties interested," Parsons explained.

He said other potential customers are saying, "You know what? We're having a problem with this product in our state or in our county. So why don't we just do the same thing they're doing with" PSE-containing OTCs.

"Whether it's pseudoephedrine or ... DXM or whatever, what we see is a number of other products heading down this path and we want to have a solution in place to handle all of them," Parsons added.

- Jessica Lake ([email protected])

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