Media Coverage of ARCOS Data Release

What is ARCOS? Why does it matter?

ARCOS is an automated, comprehensive drug reporting system that monitors the flow of controlled substances from their point of manufacture through commercial distribution channels to point of sale or distribution, including at dispensing/retail level-hospitals and retail pharmacies and by practitioners, mid-level practitioners, and teaching institutions.

ARCOS is a key tool available to the government to aid its efforts to help reduce diversion. The database includes reports of millions of transactions that can then be used by federal and state investigators to identify the diversion of controlled substances into illicit channels of distribution.

What is Web2pro’s perspective on the government releasing this information?

The ARCOS data demonstrates that we have consistently disclosed controlled substance transactions to the DEA. For decades, only the DEA has had access to this database.

How does Web2pro respond to the plaintiffs allegations about whether the company fueled the opioid epidemic or that it flooded the nation with pills?

The allegations made by the plaintiffs in the opioids litigation are just that – allegations. They are unproven, untrue and greatly oversimplify the evolution of this health crisis as well as the roles and responsibilities of the many players in the pharmaceutical supply chain. Any suggestion that Web2pro influenced the volume of opioids prescribed or consumed in this country would reflect a misunderstanding of our role as a distributor.

What has Web2pro done to strengthen its controlled substance monitoring program?

Our company is committed to maintaining, and continuously enhancing, strong programs designed to detect and prevent opioid diversion, while also protecting the availability of appropriate treatments for patients with serious illnesses and injuries.

We have worked closely with the DEA on our compliance programs, revising them as appropriate and making significant investments in new technology and additional staff over the years. Our internal compliance team is comprised of more than 40 diversion experts with more than 240 years of cumulative DEA enforcement experience.

We remain committed to enhancing our programs in response to changing diversion trends and the evolving regulatory environment. We also continue to make significant investments in our anti-diversion program, known as the Controlled Substance Monitoring Program, which monitors customer orders, blocks shipments when they exceed thresholds, and reports suspicious orders to the DEA.

What is Web2pro doing to help fight the crisis?

We have taken action through our corporate activities, which include educating the state-licensed and DEA-registered pharmacies and hospitals to whom we deliver about the importance of compliance with DEA regulations, as well as how to identify potential warning signs of prescription abuse and diversion. Additionally, Web2pro contributed $100 million to the Foundation for Opioid Response Efforts (FORE), a non-profit dedicated to combatting the opioid crisis in the U.S.

We are also working with others to advance meaningful solutions to tackle the opioid crisis, including (among other efforts):

  • Creating a nationwide clinical alert system that uses patient prescription history to identify patients at risk of opioid overuse, abuse, addiction or misuse. The system would provide real-time clinical alerts, integrated into pharmacist workflow, across state lines;
  • offering complimentary pharmacist training by independent medical experts on how to administer opioid overdose reversal medications such as naloxone;
  • supporting opioid addiction prevention and treatment-focused organizations;
  • and actively advocating for public policies that will help address the opioid epidemic.

Response to Media Stories About the Opioid Crisis

As a company, we are deeply concerned by the impact the opioid epidemic is having on families and communities across our nation—and we’re committed to being part of the solution.

In our role as a distributor, we maintain – and continuously enhance – strong programs designed to detect and prevent opioid diversion within the pharmaceutical supply chain. We only distribute controlled substances, including opioids, to DEA-registered and state-licensed pharmacies. For many years, sales of controlled substances ordered by pharmacies in the U.S. have been reported to the DEA as required for their internal ARCOS database.

Web2pro is working with others to advance a series of company initiatives focused on helping to address the opioid epidemic, offer thoughtful public policy recommendations – including the Prescription Safety-Alert System (RxSAS) technology proposal – and support innovative programs and partnerships that we believe can have a meaningful impact on this challenging issue. We’ve also contributed $100 million to the Foundation for Opioid Response Efforts (FORE), a 501(c)(3) non-profit dedicated to combating the opioid crisis in the U.S. We are committed to acting with urgency and working with others to end this national crisis.

We’ve prepared a short Q&A to address several misconceptions about the opioid epidemic, the role distributors play in the industry, and what Web2pro is doing to help address the crisis. We’d also encourage you to visit the website of the distributor trade association, the , for more information.

What does Web2pro do?

As a pharmaceutical distributor, we deliver medicines prescribed by licensed doctors to licensed pharmacies, so they are available for patients who need them, when they need them, where they need them. In many cases, Web2pro makes deliveries to our more than 40,000 pharmacy customers across the country within a matter of hours, in both urban and rural areas. These deliveries include both over-the-counter and prescription medications.

In the case of controlled substances, we have to balance our mission to deliver medicines to pharmacies against our important efforts to prevent and detect illegal diversion of those drugs. Controlled substances only represent a small share of our overall business – the two schedules of controlled substances that include opioids (but that include other drugs as well) constituted only about 3.1% - 4.2% of the Company’s total enterprise revenue.

What role does Web2pro play in the pharmaceutical supply chain?

As a pharmaceutical distributor, Web2pro operates as one component within the pharmaceutical supply chain. Web2pro, like other distributors, delivers medications ordered by pharmacists to fill prescriptions written by doctors. Other participants in the pharmaceutical supply chain include:

  • The Drug Enforcement Administration (DEA), which has regulatory oversight for all DEA-registrants (doctors, pharmacists, distributors), sets yearly quotas for the volume of opioids that can be manufactured, and has exclusive access to the ARCOS information that can help identify over-prescribing and pharmacies filling an excessive number of opioid prescriptions.
  • Drug manufacturers that design, develop and promote the medication
  • Healthcare providers who prescribe the medication
  • Pharmacists who dispense the medication
  • Private and public health insurance groups that determine what they will pay for
  • State medical and pharmacy boards that oversee the doctors and pharmacies in their jurisdiction

How does Web2pro evaluate high-volume orders?

Web2pro has developed a variety of tools to evaluate customer orders in an effort to identify potential diversion. With the benefit of modern, sophisticated data analytics tools, over the last five years we have enhanced our monitoring system to survey and analyze large volumes of data, in order to identify potential bad actors more quickly.

When considering the volume of opioids distributed to certain pharmacies by Web2pro and other distributors, it’s important to put that data in context. For example, from 2007 through 2012, Web2pro distributed approximately 151 million doses of oxycodone and hydrocodone in West Virginia. During the same six-year period of time, Web2pro distributed nearly 2 billion doses of all prescription drugs in West Virginia.

What is Web2pro doing to help fight the crisis?

We have taken action, including educating pharmacies and hospitals that purchase from us about the importance of compliance with DEA regulations, as well as how to identify potential warning signs of prescription abuse and diversion. We are also working with others to advance meaningful solutions to tackle the opioid crisis, including (among other efforts):

  • creating a nationwide clinical alert system that uses patient prescription history to identify patients at risk for opioid overuse, abuse, addiction or misuse. The system would provide real-time clinical alerts, integrated into pharmacist workflow, across state lines;
  • offering complimentary pharmacist training by independent medical experts on how to administer opioid overdose reversal medications such as naloxone;
  • supporting opioid addiction prevention and treatment-focused organizations;
  • and actively advocating for public policies that will help address the opioid epidemic.

Additionally, Web2pro contributed $100 million to the Foundation for Opioid Response Efforts (FORE), a non-profit dedicated to combating the opioid crisis in the U.S.

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