PRINTER'S NO. 522

THE GENERAL ASSEMBLY OF PENNSYLVANIA


HOUSE BILL

No. 473 Session of 1975


        INTRODUCED BY TOLL, A. K. HUTCHINSON, GILLETTE, BARBER,
           SCHEAFFER, TRELLO, COHEN, FEE, JOHNSON, TADDONIO, KATZ,
           GREENFIELD, RIEGER, CESSAR, ROMANELLI, ABRAHAM, SHUPNIK,
           MUSTO, OLIVER, GIAMMARCO, USTYNOSKI, BLACKWELL, RICHARDSON
           AND PIEVSKY, FEBRUARY 18, 1975

        REFERRED TO COMMITTEE ON HEALTH AND WELFARE, FEBRUARY 18, 1975

                                     AN ACT

     1  Creating the Drug Utilization Review Council in the Department
     2     of Health; requiring the compilation of a list of
     3     interchangeable drugs; imposing duties on pharmacists;
     4     authorizing physicians to permit substitutions and imposing
     5     penalties.

     6     The General Assembly of the Commonwealth of Pennsylvania
     7  hereby enacts as follows:
     8     Section 1.  Definitions.--As used in this act:
     9     "Bioavailability" means the extent and rate of absorption
    10  from a dosage form as reflected by the time-concentration curve
    11  of the administered drug in the systemic circulation.
    12     "Bioequivalents" mean chemical equivalents which, when
    13  administered to the same individuals in the same dosage regimen,
    14  will result in comparable bioavailability.
    15     "Brand name" means the proprietary name assigned to a drug by
    16  the manufacturer thereof.
    17     "Chemically equivalent" means drug products that contain the


     1  same amounts of the same therapeutically active ingredients in
     2  the same dosage forms and that meet present compendial
     3  standards.
     4     "Council" means the Drug Utilization Review Council.
     5     "Drug product" means a dosage form containing one or more
     6  active therapeutic ingredients along with other substances
     7  included during the manufacturing process.
     8     "Established name" with respect to a drug or ingredient
     9  thereof, means (i) the applicable official name designated
    10  pursuant to the Federal Food, Drug and Cosmetic Act (Title 21,
    11  USC 301 et seq.), or (ii) if there is no such official name and
    12  such drug or ingredient is recognized in an official compendium,
    13  then the official title thereof in such compendium, except that
    14  where a drug or ingredient is recognized in the United States
    15  Pharmacopoeia and in the Homeopathic Pharmacopoeia under
    16  different official titles, the official title used in the United
    17  States Pharmacopoeia shall apply unless it is labeled and
    18  offered for sale as a homeopathic drug, in which case the
    19  official title used in the Homeopathic Pharmacopoeia shall
    20  apply, or (iii) if neither (i) nor (ii) is applicable, then the
    21  common or usual name, if any, of such drug or ingredient.
    22     "Interchangeable drug products" mean pharmaceutical
    23  equivalents or bioequivalents that are determined to be
    24  therapeutic equivalents by the council.
    25     "Pharmaceutical equivalents" mean those drug products that
    26  contain the same amounts of the same therapeutically active
    27  ingredients in the same dosage form and that meet standards to
    28  be established on the basis of the best available technology.
    29     "Prescription" means an order for drugs or combinations or
    30  mixtures thereof, written or signed by a duly licensed
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     1  physician, dentist, veterinarian or other practitioner licensed
     2  to write prescriptions intended for the treatment or prevention
     3  of disease in man or animals, and includes orders for drugs or
     4  medicines or combinations or mixtures thereof transmitted to
     5  pharmacists through word of mouth, telephone, telegraph or other
     6  means of communication by a duly licensed physician, dentist,
     7  veterinarian or other practitioner licensed to write
     8  prescriptions intended for the treatment or prevention of
     9  disease in man or animals.
    10     "Present compendial standards" mean the official standards
    11  for drug excipients and drug products listed in the latest
    12  revision of the United States Pharmacopoeia (USP) and the
    13  National Formulary (NF).
    14     "Reference drug product" means the product which is adopted
    15  by the council as the standard for other chemically equivalent
    16  drugs in terms of testing for the therapeutic equivalence. In
    17  all cases, the reference drug product shall be a currently
    18  marketed drug which is the subject of a full (not abbreviated)
    19  new drug application approved by the Federal Food and Drug
    20  Administration.
    21     "Therapeutic equivalents" mean chemical equivalents which,
    22  when administered to the same individuals in the same dosage
    23  regimen, will provide essentially the same efficacy or toxicity.
    24     Section 2.  Drug Utilization Review Council Created.--(a)
    25  There is hereby established in the Department of Health a Drug
    26  Utilization Review Council to consist of eight members appointed
    27  by the Governor, and the Secretary of Health or his designee. Of
    28  the members to be appointed by the Governor, two shall be
    29  licensed pharmacists, two shall be licensed physicians, two
    30  shall be persons with professional scientific or research
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     1  experience in pharmacology, and two shall be members of the
     2  general public. The members appointed by the Governor shall
     3  serve for a term of five years and until their successors have
     4  been appointed and qualified, but of those first appointed, two
     5  shall be appointed for a term of two years, two for a term of
     6  three years, two for a term of four years, and two for a term of
     7  five years.
     8     (b)  Vacancies shall be filled in the same manner as the
     9  original appointments but only for the unexpired term. Council
    10  members shall serve without compensation but the members
    11  appointed by the Governor shall be entitled to reimbursement for
    12  any necessary and reasonable expenses incurred in the
    13  performance of their duties hereunder, provided that the amount
    14  of such reimbursement shall not exceed $1,000 annually.
    15     (c)  The council shall meet annually and elect a chairman and
    16  secretary from among its members. The chairman and secretary
    17  shall serve for a term of one year. The council shall meet at
    18  such other times to carry out its functions and duties at the
    19  call of the chairman or a majority of its members. The council
    20  shall be entitled to employ such advisory, technical, and
    21  clerical personnel as it deems necessary within the limits of
    22  any appropriations made available therefor.
    23     Section 3.  List of Interchangeable Drug Products.--(a) The
    24  council shall prepare a list of interchangeable drug products.
    25  This list shall be periodically reviewed in accordance with a
    26  schedule of and procedure for such review as shall be
    27  established by the council. In development of the list,
    28  distinctions shall be made when: (i) evidence of bioequivalence
    29  is considered critical and when it is not; (ii) when levels of
    30  toxicity are considered critical and when they are not. The list
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     1  may include interchangeable drug products used by the United
     2  States Government and its agencies, where the government or such
     3  agency has established the reliability of the drug products
     4  interchanged.
     5     (b)  No drug product shall be included in such list until
     6  after a public hearing has been held thereon after at least 20
     7  days' notice. Such notice shall be mailed to every drug company
     8  that is authorized to do business in the Commonwealth of
     9  Pennsylvania and to all persons who have made a timely request
    10  of the council for advance notice of its public hearings and
    11  shall be published in the Pennsylvania Bulletin.
    12     (c)  Manufacturers shall, upon the request of the council, be
    13  required to submit any information in their files that relates
    14  manufacturing processes and in vivo and in vitro tests to the
    15  bioavailability of any drug product. This requirement shall also
    16  apply to technical information obtained during research related
    17  to the development of new drug products, even when such
    18  information bears only an indirect relationship to the final
    19  dosage form. The council shall not make such information public
    20  when there is a proprietary interest on the part of the
    21  manufacturer.
    22     (d)  Any manufacturer of drug products shall have the right
    23  to request the council to evaluate its drug products for the
    24  purpose of inclusion on the list of interchangeable drug
    25  products, or to request that the council consider removal of any
    26  drug product from the list. Any such request shall be
    27  accompanied by such information as the council shall require,
    28  and any drug product involved shall be evaluated in the same
    29  manner and shall be subject to the same procedures and
    30  requirements as all other drug products evaluated by the council
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     1  for inclusion on or removal from the list.
     2     (e)  Prior to any drug product being approved by the council,
     3  the manufacturer shall be required to demonstrate that it has
     4  complied with the standards set forth in the Current Good
     5  Manufacturing Practices of Title 21 USC and must show evidence
     6  of a satisfactory inspection by the Federal Food and Drug
     7  Administration.
     8     (f)  The council shall distribute copies of the list of
     9  interchangeable drug products and revisions thereof and
    10  additions thereto among physicians and other authorized
    11  prescribers and licensed pharmacists, and shall supply a copy of
    12  any person upon request, upon payment of the price established
    13  by the council.
    14     (g)  The council shall be authorized to adopt reasonable
    15  rules and regulations to carry out its functions and duties
    16  under this act and to effectuate its purposes.
    17     Section 4.  Contents of Prescription Blanks.--Every
    18  prescription blank shall be imprinted with the words
    19  "substitution permissible" and "do not substitute" and shall
    20  contain space for the physician's or other authorized
    21  prescriber's initials next to the chosen option. Notwithstanding
    22  any other law, unless the physician or other authorized
    23  prescriber explicitly states that there shall be no substitution
    24  when transmitting an oral prescription or, in the case of a
    25  written prescription, indicates that there shall be no
    26  substitution by initialing the prescription blank next to "do
    27  not substitute," a different brand name or nonbrand name drug
    28  product of the same established name shall be dispensed by a
    29  pharmacist if such different brand name or nonbrand name drug
    30  product shall reflect a lower cost to the consumer and is
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     1  contained in the latest list of interchangeable drug products
     2  published by the council, provided, however, that such action by
     3  the pharmacist shall be authorized only if in each case the
     4  pharmacist indicates on the prescription and immediately
     5  transmits notice, either orally or by written notice to be
     6  mailed no later than the end of the business day, to the
     7  prescriber specifying the drug product actually dispensed and
     8  the name of the manufacturer thereof. However, no drug
     9  interchange shall be made unless a savings to the consumer
    10  results, and that savings is passed on to the consumer.
    11     Section 5.  Duties of Pharmacists.--Notwithstanding any other
    12  law, where a different brand name or nonbrand name drug product
    13  of the same established name shall reflect a lower cost to the
    14  consumer and no drug product of such established name is
    15  included in the latest list of interchangeable drug products
    16  published by the council, or where in the professional judgment
    17  of the pharmacist there is no valid proof of efficacy for the
    18  drug product prescribed, or the pharmacist's patient profile
    19  record discloses drug sensitivity, allergies or adverse
    20  reactions to the drug product prescribed, or there exists a more
    21  appropriate drug product than the drug product prescribed, a
    22  different brand name or nonbrand name drug product shall be
    23  dispensed by the pharmacist, provided, however, that such action
    24  by a pharmacist shall be authorized only if in each case the
    25  pharmacist notifies the prescriber of the drug product to be
    26  dispensed and the name of the manufacturer thereof, and receives
    27  the approval of the prescriber to substitute such drug product
    28  for the drug product prescribed. The pharmacist shall be
    29  required to indicate on the prescription the date and time of
    30  the prescriber's approval and whether the approval was
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     1  communicated orally or in writing.
     2     Section 6.  Use of Nonbrand Name Drug Products.--If a
     3  nonbrand name drug product is dispensed, the pharmacist shall
     4  include on the label of such drug product dispensed pursuant to
     5  a prescription the established name and the name of the
     6  manufacturer, except where the prescriber indicates to the
     7  contrary on the prescription.
     8     Section 7.  Penalties.--Any person violating any provision of
     9  this act upon conviction in a summary proceeding shall be liable
    10  to a penalty of not less than $100 for the first offense, and
    11  not less than $200 for each subsequent offense.













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