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Alpharma:NewPlatform
forGrowthMarch21,2006
FourSeasonsHotel
57East57thStreet
NewYork,NY10022Alpharma:NewPlatform
forGrWelcomeKathyMakrakis
VicePresident
InvestorRelationsWelcomeKathyMakrakis
VicePreForwardLookingStatementStatementsmadeinthispresentationincludeforward-lookingstatementswithinthemeaningofthePrivateSecuritiesLitigationReformActof1995.Thesestatements,includingthoserelatingtofuturefinancialexpectations,involvecertainrisksanduncertaintiesthatcouldcauseactualresultstodiffermateriallyfromthoseintheforwardlookingstatements.InformationonothersignificantpotentialrisksanduncertaintiesnotdiscussedhereinmaybefoundintheCompany’sfilingswiththeSecuritiesandExchangeCommissionincludingitsForm10KfortheyearendedDecember31,2005.ForwardLookingStatementStatWebcastInformationandPresentationAssumptionsWebcastInformationandPresenAgendaTOPICPRESENTERSWelcomeandAgendaKathleenMakrakisVicePresidentInvestorRelationsCompanyOverviewIngridWiikViceChairman,PresidentandCEOFinancialOverviewMatthewFarrellExecutiveVicePresidentandCFOAnimalHealthCarolWrennPresident,AnimalHealthDivisionActivePharmaceuticalIngredientsCarl-?keCarlssonPresident,ActivePharmaceuticalIngredientsBreak(10:15AM–10:45AM)BrandedPharmaceuticalsRonaldWarnerPresident,BrandedProductsJosephStaufferVicePresident,ClinicalResearch&MedicalAffairsWrapUpIngridWiikViceChairman,PresidentandCEOLunch(12:00PM)EachBusinessSegmentSessionWillIncludeTimeforQ&AAgendaTOPICPRESENTERSWelcomeaCompanyOverviewIngridWiik
ViceChairman
PresidentandCEOCompanyOverviewIngridWiik
ViHighMarginBusinesseswithGrowthOpportunitiesSpecialtyPharmaceuticalBusinessesBrandedKadian?:extendedreleasemorphineproductGrowingKadian?prescriptionsandmarketshareActivePharmaceuticalIngredientsFermentationandpurificationexpertiseAnimalHealthAworldwideleaderinthetreatment
andpreventionofdiseasesinfoodproducinganimalsAH
58%API
24%Branded
18%AH
46%Branded
17%API
37%HighMarginBusinesseswithGrBrandedBuildpainfranchise–investinproductstoleveragesalesforceDevelopnextgenerationabusedeterrentproductsandexpanddrugdeliverytechnologyAPILaunchadditionalhighpurityfermentation-basedactiveingredientsandexpandintospecialty-injectablesThroughAsianalliances,developandproducenewproductsandexpandexistingcapacityanddriveworldclasscostAHLeveragemarketreputationtodelivernewMFA’svialicensingandacquisitionofproductsOfferexistingmoleculeswithdifferentdeliverysystemsandwithnewindicationsNewFocus+InvestmentstoDriveGrowthGrowthStrategyBrandedNewFocus+InvestmentsGrowthPotential2001–2005growthofourcurrentSpecialtyPharmabusinessesRevenue:CAGR8%Operatingincome:CAGR29%WenowhavethefinancialresourcestoaccelerateourgrowthopportunitiesTargetedOrganicGrowthOpportunitiesRepresentRevenuesof$700M+GrowthPotential2001–2005grFinancialOverviewMatthewFarrell
ExecutiveVicePresident
andCFOFinancialOverviewMatthewFarrALOFinancialHistory$inmillions*ExcludingassetandgoodwillimpairmentsCAGR8%EstablishedGrowthCAGR29%ALOFinancialHistory$inmill2005YearEndBalance $800DebtPay-offinJanuary2006: TotalDebt@December31,2005
Premium/Interest (417)
(24)ParMedsalepending(netafter-taxproceeds) ~+352006FreeCashFlow: ContinuingOperations ~+70 DiscontinuedOperations–Accrued
expensesrelatedtogenerics,primarilytax
(60) ~$400Estimated$400MillionCashAvailableforInvestmentCashAvailableforInvestment$inmillions2005YearEndBalance $2006Outlook
FullYear2006EPS$1.25-$1.35BrandContinuedKADIAN?prescriptiongrowthPhaseIIClinicalTrialsforabuse-deterrentproduct-$15-$20millionincrementalR&DIncreasedKADIAN?SG&AinfrastructuretosupporthighgrowthbusinessAPILaunchfluticasoneinQ32006Launching1-2morenewmoleculesbyQ42006AnimalHealth5newproductlaunchesin2006Corporate/Unallocated2006outlookincludes$12million($0.14EPS)ofpredominantlyone-time2006expenses$3million($0.04EPS)ofstockoptionexpensealsoincludedin2006outlookOutlookadjustedforone-timeexpenseEPS:$1.39-$1.49;EBITDA$154million-$162million2006Outlook
FullYear2006EPAnimalHealthCarolWrenn
President
AnimalHealthDivisionAnimalHealthCarolWrenn
PresiWhatWe’llTalkAboutBusinessandmarketoverviewCompetitivelandscapeGrowthinitiativesExpandingshareNewproductpipelineWrapupWhatWe’llTalkAboutBusinessAnimalHealthbusiness
hasstrongmargins,solidcustomerrelationships,brandrecognition,butuntil2005hadlowhistoricalrevenuegrowth.
Webelieveweareonanewtrajectory.AnimalHealthbusiness
hasstStableNicheBusinesswithStrongMarketPositionAnimalHealthAHDspecializesinproductsforthetreatmentandpreventionofdiseasesinfoodproducinganimals,withastrongportfolioaddressingintestinalandrespiratoryissuesMarketleaderinmedicatedfeedadditives(MFA’s)andWaterSolubles:productsaddedtoanimalfeedordrinktopromotegoodhealthProductssolddirectlytomajorpoultryandlivestockproducersorthroughdistributorsMajorproductsincludebacitracin,chlortetracyline,lasolocidSoldunderbrandnamesBMD?,Albac?,Aureomycin?,Avatec?,Bovatec?StableNicheBusinesswithStrBiologicals22%MFA's12%Pharmaceuticals66%AnimalHealthMarketCurrentBusinessMFA–OpportunityinPharmaceuticals$325MAH2005RevenuesWaterSolubles6%MFA’s
94%*ExcludesVitamins$13.7B*GlobalMarketbyMajorProductBiologicals22%MFA's12%Pharmace
TotalMkt .MFAMkt
Total
ALOShare
Total
ALOSHARE
Poultry 1.6 10% .59 27%Cattle 3.7 2% .32 20%Swine 2.3 3% .54 14%Horses 0.5 --- --- ---Sheep 0.6 --- .07 ---Dogs&Cats 4.6 --- .07 ---Others 0.4
--- --- ---Total $13.7 2.4% $1.6 19%
TotalMkt .MFAMkt
Mkt
ALOShare
Total
ALOShareN.America
4.7 4% .61 30%Asia 2.7 1% .42 5%L.America 1.5 2% .17 19%EMEA 4.8
1%
.40
12%Total $13.7 2.4% 1.6 19%AnimalHealthMarketALOhasLeadingPositioninMFA’s….OpportunitytoExpandby
SpeciesandRegionSalesBySpecies($B)SalesbyRegion($B)*Source2005WoodMckensie
AnimalHealthPerformance2005RevenueGrowthDrivenPrimarilybyShareGains
OIReflectsDramaticMarginImprovement
2.5%12.8%46%89%*ExcludesdivestedoperationsRevenues($M)*OperatingIncome($M)*AnimalHealthPerformance2005COCCIDIOSIS(Eimeria)AvatecBioCoxBovatecDeccoxCycostatCygroNicarbZoamix3-NitroPoultrySulfaSulQNoxENTERITIS(Clostridia)AlbacAlcareAureomycinBacivet-SBMDBMDSolubleLincomycinSolILEITIS(Lawsonia)AureomycinDYSENTERY(Serpulina)AlbacAlcareBMDBMDSolubleLincomycinSolGoodFranchiseinEntericDiseases-55%ofBusinessCOLIBACILLOSIS(E.coli)NeoSolTetSolBacterialDiseasesProtozoalDiseaseIntestinal(Enteric)ProductOfferingCOCCIDIOSIS(Eimeria)ENTERITISPASTEURELLOSIS,BRD(Pasteurella)AureomycinLincoSolubleCTCHClOxytetSolublePoultrySulfaTetSolMYCOPLASMAPNEUMONIAAureomycinOxytetSolubleTetSolAGoodBaseinRespiratoryTreatments-30%ofBusinessRespiratoryProductOfferingsMycoplasmapneumoniaBacterialpneumoniaPASTEURELLOSIS,BRD(PasteurelTodayTechnologyplatform:MFAandWaterSolublesStrongentericandrespiratoryportfolioforfoodproducinganimals2005resultsdemonstrateabilitytogrowGreatbrandrecognition+customerrelationships...SOHOWDOWESUSTAINTHENEWTRAJECTORY?TodayGrowingtheBusinessExpandingmarketshareinourcurrentbusinesswithexistingMFA’sandwatersolublesIntroducenewproductlineextensionsandnewindicationsGeographicexpansionNewproductsTomeetcurrentcustomerneedsincurrentmarketToenternew/expandedmarketsegmentsGrowingtheBusinessExpandingExpandingShareinCurrentBusinessActivitiesUnderwayTargeting$50M+ofRevenueOpportunityExpandingShareinCurrentBusNewProductsNewproductstomeetcurrentcustomerneedsIntestinal(Enteric)RespiratoryExpandintonewmarketsegmentsCompanionanimalsDairycattleRevenueOpportunityof$70M+NewProductsNewproductstome#ofPlannedAHNewProductLaunchesCommercializingMoreProducts#ofPlannedAHNewProductLaProductSpeciesSpecialtyDosage
FormNewProduct/
ExistingMarketNew
Market2005CTC-HCLSwineRespiratoryOral-GranulateüBetaMossCattleEntericOral-Granulateü2006PoultrySulfaPoultryEnteric/
RespiratoryOral-WaterSolubleüDairyCattleCattleOtherTopicalüHorseCoolingTherapyCompanionOtherTopicalüCompanionAnimalCompanionNutritionOral-WaterSolubleüLatinAmericanComboMultiEntericOral-Granulateü2007Anti-InfectantWaterSolubleMultiRespiratoryOral-WaterSolubleüAnti-InfectantWaterSolubleMultiRespiratoryOral-WaterSolubleüCompanionAnimalGenericCompanionDermotologyTopicalüLincomycinInjectableSwineRespiratoryInjectableüGenericMFAMultiEntericOral-GranulateüEntromycinCompanionEntericOral-WaterSolubleüProductLaunchCalendarOnTrackwithNewProductImplementationsProductSpeciesSpecialtyDosage
PotentialNewProductRevenuesLaunchingProductsOvertheNextThreeYearswithMaturityValueof$70M+$inmillionsPotentialNewProductRevenuesSummaryContinuetoincreasevalueinexistingproducts$50M+opportunityrelatedtoadditionalproductindicationsandgeographicexpansionNewproducts/newsegments$70M+ofrevenueopportunitySignificantGrowthOpportunitiesSummaryContinuetoincreasevaAnimalHealthbusiness
hasstrongmargins,solidcustomerrelationships,brandrecognition,butuntil2005hadlowhistoricalrevenuegrowth.
Webelieveweareonanewtrajectory.AnimalHealthbusiness
hasstActivePharmaceuticalIngredientsCarl-?keCarlsson
President
ActivePharmaceuticalIngredientsActivePharmaceuticalIngredieWhatWe’llTalkAboutBusinessandMarketoverviewGrowthinitiativesExpandandimprovecurrentbusinessIntroducenewproductsForwardintegrateWrap-upWhatWe’llTalkAboutBusinessProducesactiveingredientsforpharmacompaniesmarketingthefinishedproductsProfitableproductnicheswithstrongoperatingmarginsALOproficientinlengthy,complexFDAapprovalprocessAdvancedfermentationandpurificationcapabilitieswithsynthesiscapabilitiesinR&DActivePharmaceuticalIngredientsGloballyRecognizedSupplierofKeyAPI’s
PredominantlywithInjectableandTopicalApplicationsProducesactiveingredientsfoRemainingAPIs
25%Baci,Poly,
Vanco,
70%DosageForm
9%Contract
3%APIOverviewFermentationandPurificationExpertiseBiologicalsExtractsBiopharmaceuticals
19%Fermentation
6%SemiSynthetics
5%Synthetics
70%Other
66%Antibiotics
34%RemainingAPIs
25%Baci,Poly,
APIPerformance$inmillionsBacitracinPriceIncreaseImpactPeakedin2004VancomycinVolumeGrowth
andTobramycinLaunchMitigated2005PriceReductionRevenueOperatingIncomeAPIPerformance$inmillionsBaStrategyExpandandimproveourcurrentbusinessAtaminimum,doublethenumberofAPIproductsfrom10to20infiveyearsIncreasethevalueofourproductofferingthroughforwardintegrationActivelySearchingforValueAddingOpportunitiesBecomeTheLeadingSupplierofAPIsandEnd-to-EndSolutionsfortheInjectableMarketStrategyExpandandimproveourExpandOurSuccessfulCurrentBusinessBemarketleaderinallourproductsDeliverbestinclasscustomerservicethroughcontinuousinnovationCustomerspecificproductqualitydelivered“ontime,everytime”ControlcoststhroughfocusedprocessimprovementsExpandOurSuccessfulCurrentDoubleTheNumberofAPIProductsFrom10to20InFiveYearsFocusonpipelinemanagementandexploitincreasedR&DspendExpandinhouseAPItechnologyplatformtoincludesemi-syntheticsLeverageourinternationalR&DandsupplychainpartnershipsDoubleTheNumberofAPIProduIncreaseTheValueOfOurProductOfferingThroughForwardIntegrationDevelopcapabilitytoofferinjectabledosageformulationsOfferallkeyAPIsasfinishedproductsolutionsIncreaseTheValueOfOurProdVancomycinAPIMarketisAttractiveinSizeandisExpectedtoContinuetoGrowVancomycinisstillgoldstandardtreatmentforseveregrampositiveinfectionsMarkethasbeengrowingat3-5%perannum,whichisexpectedtocontinuePrevalenceisincreasing,stillunder-treatmentinmanymarketsNewproductsinthissegmenthavebeenintroducedatapremiumprice(10-20xvanco)ConsequentlytakenasmallvolumeshareSofarexpandedthemarketratherthancannibalizedVancomycinvolumesSomeestablishedAPIsuppliersexitingthemarketScaledrivenorportfoliodecisionsCompetitiveLandscapeChanginginVancomycin–APIOpportunityof$20M+ExpandandImproveCurrentBusinessVancomycinAPIMarketisAttraExpandAndImproveCurrentBusinessFocusedProcessImprovementsisaKeySuccessFactorandanALOFocusAreaSingleMoleculeExampleofProcessImprovementImpactonTotalYieldExpandAndImproveCurrentBusExpandandImproveCurrentBusinessandIntroduceNewProductsBuildingAsianpartnershipsTechnologytransferandbusinessdevelopmentunitestablishedinShanghaiThreelongtermagreementsputinplacein2005/Q12006Tobramycinnon-sterileinChinaMupirocininTaiwanFluticasoneinChinaMoreareinprogressandagreementsshouldbeconcludedin2006RangeofnewAPIproducts(immunomodulators)RangeofnewAPIproducts(Oncology)RangeofnewAPIproducts(antivirals)ExpansionofmanufacturingcapacityBuildingAsianR&DandSupplyChainPartnershipsUnderALOControlCommercialModelsareTailor-MadeandareConstructedasWin-WinPartnershipsExpandandImproveCurrentBusDryPowderfillPre-filledsyringesLyophilizedvialsFinishedprod.formulationSynthesis/SemisynthesisBiologicalsFermentationFinishedDosageFormsTechnologyPlatformOwndevelopmentTherapeuticAreasOncologyAntiinfectivesPainImmunomodulators&otherLicensingAPIsselectedfromspecifictherapeuticareas,supportingend-to-enddevelopmentstrategyOwndevelopmentbuildingonAPItechnologyplatformandtargetingAPIswithinjectableapplicationCurrentFutureIntroduceNewProducts–DevelopmentandTechnologyStrategySourcing/licensingPossibleDryPre-filledLyophilizedFiniIntroduceNewAPIProductsInitiativesUnderwayTargetAPIRevenueOpportunityof$50M+Morethan10AdditionalProductsCurrentlyUnderEvaluation/NegotiationProductYearofLaunchBrandTherapeuticAreaTobramycin2005Tobi,Nebcin,Simplexetc.AntibacterialTeicoplanin2006TargocidAntibacterialFluticasone2006Flonase,Flovent,Advairetc.AntiflammatoryMupirocinacid2006BactrobanAntibacterialALD120ALD1132006/072008AntiflammatoryAntibacterialALD1112009PainALD1092010AntibacterialALD1122011AntifungalIntroduceNewAPIProductsInitIntegratingForward–SecuringGrowthandProtectingMarginsLackofmanufacturingcapacityforfreezedriedinjectablevialsALOhasexpertisefromAPIfreezedryinganddrypowderfilltechnologiesALOhasregulatoryexpertiseALOhasregistrationsforvancomycinvials(EUandAsia)distributedthroughAcatavisALOissellingCMSdrypowderfillvialsasprivatelabelForwardIntegrationintoFreezeDriedInjectableVialsRepresentRevenue
OpportunityforCurrentandPipelineAPIsinExcessof$30+MillionTotalvialmarketforALOAPIproducts(currentandpipeline)inexcessof150MvialsIntegratingForward–SecuringIntegratingForward-LaunchingFinishedDosageFormProductsas“PrivateLabel”RepresentsRevenueOpportunity$30M+SeveralAdditionalProductsCurrentlyUnderEvaluationProductYearofLaunchBrandTherapeuticAreaTeicoplanin2008TargocidAntibacterialALD1182009AntibacterialALD1092010AntibacterialALD1122011AntifungalIntegratingForward-LaunchiSummary–SignificantGrowthOpportunitiesContinuetogrowopportunitiesinexistingAPIproductsCapitalizeonvancomycinmarketchanges-$20M+revenueopportunityDoublenumberofAPIproductsoffered$50M+revenueopportunityIntegratingForwardFreezedriedinjectablevials$30M+revenueopportunityLaunchingadditionalfinisheddosageformproductsasprivatelabel$30M+revenueopportunitySummary–SignificantGrowthOBrandedPharmaceuticalsRonaldWarner,PhD
PresidentBrandedProducts
JosephStauffer,DO
VicePresidentClinicalResearchandMedicalAffairsBrandedPharmaceuticalsRonaldWhatWe’llTalkAboutBusinessandmarketoverviewKADIAN?productandtechnologyGrowthinitiativesExpandcurrentbusinessLineextensions,newindications,newgeographyAddcomplementaryproductsPainandrelatedproductsDevelopabusedeterrentproductsWrapupWhatWe’llTalkAboutBusinessGrowingMarketPresenceBusinessOverviewKADIAN?-Sustainedrelease,longactingmorphineproduct–indicatedformoderatetoseverechronicpain194SalesRepresentativesFocus–highprescribingdecile6–10physiciansMarketingmessage–flexibilityandindividualizedpaintherapyInternalR&D,competenciesinmicro-particulatecoatedcontrolled–releasetechnologiesGrowthinitiatives–productin-licensingandabuse–deterrent
painproductsGrowingMarketPresenceBusines$3.7BillionMarket–MajorALOOpportunityMarketOverviewPainrepresentsasignificantmarketopportunitywithunmetneedsMarketwillcontinuetogrowinvolumeaspopulationagesTwocompanieshavehistoricallydominatedthemarketsegment(Purdue,Janssen)Existingblockbusterproductshavegonegeneric(OxycontinandDuragesic)Competitionactivewithahighshareofvoice(Ligand/Organon,Janssen,Purdue)Abuse/diversionhighontheagendaofdocsandDEARiskmanagementprogramsexpectedtoexpand$3.7BillionMarket–MajorALKADIAN?FinancialPerformanceSolid2005PerformanceDrivenbyShareGrowthandPrice$inmillionsKADIAN?FinancialPerformanceS30%TRxGrowth(2004to2005)KADIAN?Prescription(TRx)Performance-2005JanuaryDecember30%TRxGrowth(2004to2005)KContinuedGrowthin2006KADIAN?Prescription(TRx)Performance–2005-200620052006JanuaryDecemberContinuedGrowthin2006KADIANKADIAN?MarketShare–20051PPTMarketShareExpansion(TRX)JanuaryDecemberKADIAN?MarketShare–20051PCompetitiveLandscape–ControlledReleaseProductswithModeratetoSevereChronicPainIndicationsAnnualgrowthof2-3%15millionprescriptionsannually$3.7billionmarketin2004MarketShareByProductChangingLandscape–DynamicMarketPlace*Source:NDCDataCompetitiveLandscape–ControAvailableinfivedosingstrengths:20mg30mg50mg60mg100mgTheMostFlexibleDosingandTitrationOptionsofAllProductsinCategoryKADIAN?Onceortwice-a-daydosingNo“bolus”doseThreeroutesofadministrationNoceilingdoseNosignificantfoodinteractionAvailableinfivedosingstrenDosingIntervalAvailableStrengthsAdministrationBolusCeilingdoseKADIAN?12h24h20,30,50,60,100mgCapsule
Sprinkle
G-TubeNo–Avinza?24h30,60,90,120mgCapsule
SprinkleYes1600mgOxycontin?12h10,20,40,80mgTabletYes–MSContin?12h15,30,60,100,200mgTabletYes–Duragesic?72h12.5,25,50,75,100mcg/hrPatchNo–ComparisonofLong-actingOpioidsDosingIntervalAvailableStrenPatentNumberExpirationType“128”April13,2010Composition“474”March21,2010Composition“766”July19,2011MethodKADIAN?PatentsIntellectualPropertyNoParagraphIVFilingstoDatePatentNumberExpirationType“12KADIAN?ExpandingMarketShareExpandKADIAN?IndicationsGrowingtheBusiness–How?KADIAN?LineExtensionsstrengthspackagingdosageformsTerritoryExpansiongeographic“new”marketsOtherPainProductsbreak-thrupainnewdosageformsacutepainlessseverepain0OtherPainRelatedProductshormonereplacementantiemeticsantidepressantsetc.AbuseDeterrentProductsIR/ERdifferentopioidsKADIAN?ExpandGrowingtheBusinGrowingtheBusiness
KADIAN?LineExtensions-InternalDevelopmentAdditionalindicationsNewstrengthsDifferentdosageformsAdditionalgeographiesNewmarketsRevenueOpportunity$30M+AnnuallyGrowingtheBusiness
KADIAN?LGrowingtheBusiness
AddComplementaryProducts-BusinessDevelopmentForPainBreak-thrupainAcutepainLessseverepainForPainRelatedIndicationsAntiemeticsHormonereplacementAntidepressantsSleep-aidsMusclerelaxantsSeveralInvestmentOpportunitiesBeingTargetedGrowingtheBusiness
AddComplGrowingtheBusiness
Abuse-DeterrentProductsImmediatereleaseproductsExtendedreleaseproductsMultipleopioidsRevenueOpportunity$500M+AnnuallyGrowingtheBusiness
Abuse-Det
OpioidAbuse-DeterrentTechnologies
Pharmacologic
CombinationMechanisms
Physical
AversiveComponent
DeterrentPackaging
OpioidAbuse-DeterrentTechnoPharmacologic -SequesteredAntagonist -Bio-availableAntagonist
CombinationMechanisms
(Alpharma’sFocus)
Physical -Difficulttocrush -Difficulttoextract
AversiveComponent-Capsaicin–burningsensation-Ipecac–emetic-Bitrex?
–bittertaste
DeterrentPackaging -RFID–Protection
-Tamper-proofbottles
Increasingabusedeterrence
OpioidAbuse-DeterrentTechnologiesHierarchyPharmacologicCombinationMechaKADIANSustained-release
pH-dependent
polymer-coatedshellMorphinesulfate
binderlayerSugarSphereNTSustained-release
pH-dependent
polymer-coatedshellOpioid
binderlayerSequesteredCoreKadianVersusAbuse-deterrentLong-actingOpioid(NT)KADIANSustained-release
pH-depJosephW.Stauffer,DO
VicePresident,ClinicalResearchandMedicalAffairs
AlpharmaBrandedProductsDivision
AssistantProfessor
AnesthesiologyandCritical
CareMedicine
JohnsHopkinsUniversityHospitalJosephW.Stauffer,DO
VicePrAbuse-DeterrentOpioids
WhatWe’llTalkAboutIsprescriptionopioidabuseanissue?Whatisthecostofopioidabuse?InternetOpioidAbuseSurveillanceStudyDophysicianscareaboutabusedeterrence?OurabusedeterrentdevelopmentprogramAbuse-DeterrentOpioids
WhatWPain&Addiction:
FDA,DEA,LawEnforcement,Patients,ProvidersPain&Addiction:
FDA,DEA,LaTotalPainAddiction2-5%AberrantBehavior40%Abuse20%WebsterLR,WebsterRM.Predictingaberrantbehaviorsinopioid-treatedpatients:Preliminaryvalidationoftheopioidrisktool.PainMed.2005.6(6):432-42.ChronicPainPopulationisatRiskforAbuse,Diversion,
andAddictionTotalPainAddictionAberrantAbuHealthcare30.1%Workplace49.7%CriminalJustice20.2%TotalCost=$9.2BillionSource:BirnbaumH,etal.“CostofPrescriptionOpioidAnalgesicAbuseintheUnitedStatesin2001:ASocietalPerspective,”presentedattheAmericanCollegeofEpidemiologyAnnualMeeting,September2004.TheCostofPrescriptionOpioidAbuseintheUnitedStatesin2001PrescriptionOpioidAbuseisaSignificantPublicHealthProblemHealthcare30.1%Workplace49.7%CSource:WhiteA,etal.“DirectCostsofOpioidAbuseAmonganInsuredPopulationintheU.S.,”presentedattheAmericanSocietyofHealth-SystemPharmacistsMidyearClinicalMeetingandExhibits,Dec5-9,2004.OpioidAbusersNon-AbusersAverageAnnualDirectCosts*ofOpioidAbusers
andNon-abusers:AdministrativeClaimsData$0$2,000$4,000$6,000$8,000$10,000$12,000$14,000$16,000$18,000OpioidAbusersNon-abusersOtherCosts**OutpatientCostsHospitalInpatientCostsDrugCosts5%34%48%13%11%51%17%21%*Costsarein2003Dollars.Thedifferencebetweenallmeanannualcostsofopioidabusersnon-abusersisstatisticallysignificantlydifferentatthe1%level(p<.01)exceptfor"OtherCosts"forwhichthe"OtherPlaceofService"componentissignificantlydifferentatthe5%level(p<.05).**OtherCosts"include:"OtherPlaceofService"and"EmergencyRoom"costs.TotalDirectCost=$1,830TotalDirectCost=$15,884Source:WhiteA,etal.“Direc20mg30mg50mg60mg100mgHowDoesKADIAN?CompareintheWorldofPrescriptionOpioidAbuse?20mg30mg50mg60mg100mgHowQuantitativeInternetSurveillance:ContentAnalysisAndMonitoringOfInternetPrescriptionOpioidAbuse-RelatedPostingsStephenF.Butlera*,SynneWingVenutia,ChristineBenoita,RichardL.Beaulaurierb,BrianHoulea,
NathanielKatzac
aInflexxion,Inc.,Newton,MA02464USA,bFloridaInternationalUniversity,Miami,FL33199USA,cTuftsUniversitySchoolofMedicineAbstract2005ThisstudydescribesthedevelopmentofasystematicapproachtoanalysisandmonitoringofInternetchatterasameansofmonitoringpotentiallyabusableopioidanalgesics.Messageboardsdedicatedtodrugabusewereselectedusingspecificinclusioncriteria.
AllrelevantInternetpostswerecaptured(total=48,293).
Acodingsystemwascreatedtocomparecontentofpostsrelatedtothreeopioidanalgesics:Kadian,Vicodin,andOxyContin.
Thenumbersofpostscontainingmentionsofthetargetdrugsweresignificantlydifferent(OxyContin(1,813)>Vicodin(940)>Kadian(27),p<.001).
Analysesrevealedthatthesedifferenceswerenotsimplyareflectionoftheavailabilityofeachproduct(i.e.,numberofprescriptionswritten).
Inaformalreliabilitytest,thecontentcodingsystemachievedgoodinter-raterreliabilitycoefficients(averagekappaacrossallcategories=.76,range=.52to1.0).
Contentanalysisofasampleof234randomlyselectedpostsindicatedthattheproportionofInternetpostsendorsingrecreationaluseofKadianwassignificantlylessthanOxyContin(45.5%vs.68.4%,p=.036),andnumericallylessthanVicodin(45.5%vs.57.6%,p=.291).
Theseresultssuggestthatasystematicapproachtopost-marketingsurveillanceofInternetchatterrelatedtopharmaceuticalproductsisfeasibleandyieldsreliableinformationaboutthequantityofdiscussionofspecificproductsaswellasqualitativeinformationregardingthenatureofthediscussions.
ThisinvestigationstandsasafirstattempttoestablishsystematicmethodsforconductingInternetsurveillance.
Manuscriptsubmittedto,Journal:PainAbstractsacceptedatConferences:AmericanMedicalEducationandResearchinSubstanceAbuse(Oct2005);AmericanPainSociety
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