Mass Serialization and Traceability Implementation in the Pharma Industry. Mathieu Aman, Global Program Lead F. Hoffmann-La Roche Ltd, Switzerland

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Mass Serialization and Traceability Implementation in the Pharma Industry Mathieu Aman, Global Program Lead F. Hoffmann-La Roche Ltd, Switzerland

What drives the industry towards more traceability Strategic thinking & a long-term vision required Roche's roadmap A few Take-home messages

An ongoing focus towards more control & security in todays global Pharma Supply Chains The Importance of Packaging is Increasing in Pharma Regulators Customers Global Supply Chain Threats / Challenges Brand Protection SC visibility & Control Product security External drivers counterfeits diversion theft Internal drivers Patient safety through Barcoding & a safer Product Identification bed-side scanning avoid medication error 5 patient s rights mobile computing authentication Process integrity & Transaction security with Traceability at Sales Unit level chain of custody / accountability protect industry reputation combat re-imbursement fraud supply chain visibility trust recall effectiveness E-supply-chain & Digitization as a transformational and sustainable trend m-health / e-services e-leaflet mobile computing authentication sales unit level data (payers) 3

An ongoing focus towards more control & security in todays global Pharma Supply Chains The Importance of Packaging is Increasing in Pharma Regulators Customers Global Supply Chain Threats / Challenges Brand Protection SC visibility & Control External drivers Internal drivers Product security Patient safety through Barcoding & a safer Product Identification Process integrity & Transaction security with Traceability at Sales Unit level E-supply-chain & Digitization as a transformational and sustainable trend MAH s responsibility: Increase Confidence & Demonstrate evidence that product is safe & secure from manufacturing till it reaches the patient Building in intelligence and sophisticated features into primary & secondary packaging Interactive packaging intelligent packaging 4

Level 1: 2D-CODING and SERIALIZATION The outcome: the sales units gets unique and tamper-proof A unique number to identify each single tamper-proof sales pack Serial Number A unique number assigned to a single unit new A randomized numeric code Roche is global GS1 member Material Number GTIN / NTIN new Data Carrier Machine readable new Overt/Covert Anti- Counterfeiting features Human Readable Information Tamper Evidence 5

What drives the industry towards more traceability Strategic thinking & a long-term vision required Roche's roadmap A few Take-home messages

Total Enterprise Performance Strategic thinking & a long-term vision Vision ideal state Roche approach: Vision + backward planning Maximize Biz. Value 2016 3 2013 Ramp-Up/ Deploy 2 2010 1 Proof-of-concept EU VPD Korea SER TE Brazil T&T E-pedigree 2009 French Coding What we didn t want: «Classical» Incremental approach Think BIG Start SMALL Scale FAST 7

Investment level Where do we see this journey going Do not focus on one specific requirement; Instead, put in perspective From Product Security to Transaction Security & Digitization Technical security measures I Serialization II & Tamper Evidence Traceability III Secure e-supply Chain E-services IV M- services The country maps indicate what the country targets as of today < 2010 2020 2015 8

Strategic thinking & a long-term vision What our approach is from beginning A cross functional global effort ensure standardization, interoperability and integration Strong global drive & close cooperation with local implementation teams / SME s This is not only a technical project Develop and implement an adaptable/scalable technical standard solution Co-develop with vendor A constant mix of prototyping, conceptual design and operational implementation Work together with other stakeholders authorities, standard bodies, associations, peers, trading partners, vendors Accept the challenge as an opportunity Success through a collaborative approach 9

What drives the industry towards more traceability Strategic thinking & a long-term vision required Roche's roadmap A few Take-home messages

Implementation Effort A long term effort We are here BUILDING THE INFRASTRUCTURE WHILE FULFILLING REGULATIONS MAXIMIZING BUSINESS VALUE Phase O Strategy defined, prepare execution Phase I Proof-of-concept, built a working infrastructure (E2E) & fulfill short term requirements Phase II Ramp-up & fulfill mid-term requirements Packaging line upgrade Foundation in place EU, US timelines known. Define implementation pace Kick-off D1 Prepare implementation roadmap D2 Decision taken to ramp-up 2009 2010 2011 2012 2013 2014 2015 2016+ 11

As a consequence, we have to upgrade all packaging lines and build a new IT-infrastructure while ensuring continuous supply The PHYSICAL WORLD Automation Unit Primary Automation Unit Serialization Automation Unit Case Automation Unit Palett Line Server Plant Server Line Network The DATA WORLD Coordination of various vendors requiring strong and robust planning under consideration of capacity bottleneck at OEM vendors Regulatory developments with impact on program timelines Roche supply constraints Consider line/site switches Build bridging stocks in alignment between supply planning-site planning team Consider workarounds e.g. offline printing

New serialization processes Demand Impacted functions It is not only about line upgrades & IT tools! People & Functions are impacted, requiring a strong change management Artworks Change Coordination Master Data Management Warehousing Operator Commercial Operations DC Operator Information Technology Supply Chain: Materials Management, Planning Packaging Development Packaging Operations QA/QC QA/QC Manage Demand Produce Quality Product Assess & Release Material Manage Logistics & Distribution Supply Maintain country/regulatory requirement database in master data / BoM / recipe Maintain Product # / GTIN in master data (MDMS, MLS) Manage artworks change Print/verify Product # on pack Transmit serial # ranges to MLS, LC Print/verify Serial # on pack Collect serial # from MLS, LC and transmit to OER EDI interface monitoring QC-testing & grading acceptance criteria Manage serialized samples Manage deviations / OoS Create ASN to trading partner Report data to MoH database Manage customer s authentication request Manage delivery of serialized/ aggregated products in warehouse Transfer serialized products between CoE/CMO and DC s Exception handling in warehouse Exception handling in DC Change management the REAL challenge of the implementation of mass serialization 13

What drives the industry towards more traceability Strategic thinking & a long-term vision required Roche's roadmap A few Take-home messages

Onboarding of HC actors by continuous scope extension See the example of Turkey s implementation roadmap What s next? E-leaflet? The same can currently be observed in Argentina & in Korea (live since 2010/2013) 2015+???? 2014 App for patient verification Patients Reach out to public 2013 E-prescription / e-invoicing All Health providers Onboard & Connect 2012 Tracking & Tracing Wholesalers Onboard & Connect 2011 2010 In scope 40 000 Stakeholders Hospitals Health Centers Family Physician Centers Pharmacies and Pharmacy Warehouses Manufacturers Importers Reimbursement Institutions Verification at dispensing + scanning based Re-imbursement Barcoding & Item Serialization Pharmacists Pharma Industry Figures & Facts today Number of drug types in İTS: 18 900 Number of drug unıts in İTS: 7 000 000 000 Number of daily operations in İTS: 45 000 000 Number of operations per second in İTS: 520 Response time of system: < 1 sec ROI in ONE YEAR! MoH builds IT infrastructure & Database Apply 2D Barcode / Technical features 15

Applying a 2D Barcode on the packs is just the beginning of the journey and it s not only about Traceability Content removed 16

Doing now what patients need next