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Second Manufacturer Townhall: Responding to COVID-19 § April 9, 2020 During the call, please submit questions via the chat function or via email to: Solutions@amerisourcebergen.com
Today’s Speakers Dave Picard Rich Tremonte Bob Mauch Heather Zenk Sr. Vice President, Global Generics EVP and President, Community & Sr. Vice President, Replenishment EVP & Group President Pharmaceuticals Specialty Pharmacy & Secure Supply Chain Operations 3 Confidential
Agenda 1 Opening Remarks 2 Inventory Update 3 Collaborating with Government Agencies 4 Working Together with Our Customers 5 Q&A 6 Closing Remarks 4 Confidential
Calm Thoughtfully Decisive Our Response Compassionate Fact Based Patient Focused
“Hot Zones”: AmerisourceBergen Support of Acute Care • Fair Share Allocations to ensure all customers can access patient treatments • Protecting inventory from stockpiling/hoarding behavior • Historical demand isn’t meeting elevated customer needs - but we are being as responsible as we can to support the entire country as COVID-19 continues to spread • Increased allocations in “Hot Zones” identified by Johns Hopkins, CDC, and WHO data • Advance deployment of product to Distribution Centers servicing “Hot Zones”
Supply Challenges • Surge ordering across network • Payer approval for 90-day supply scripts and early refills • Metered Dose Inhalers (MDIs) – Shifting Uses • Nebulizer switching to MDIs (CDC recommendations) • Increased asthma/chronic patient refills driven by lock-downs and shelter-in-place • Insulin & Diabetic Supplies • Insulin for treatment of COVID-19 patients (high incidence co-morbidity) • Increased diabetic patient refills driven by lock-downs and shelter-in-place • Ventilation Support Drugs • COVID specific usage vs. ongoing patient treatment
Manufacturer & Wholesaler Communications • AmerisourceBergen continues to work closely with manufacturers to increase inventory • Inventory changes on an hourly basis and some information may not be timely • Even with manufacturers increasing product in the supply chain, increased demand means that inventory is being depleted almost immediately • Many manufacturers keeping wholesalers to historical purchasing levels, looking at demand in January and February ü Protecting long-term viability of the supply chain • Definition differences of “shortages” between wholesalers and manufacturers
Staying Connected • Working together and communicating through a difficult and emotional period for our customers • Understanding the concerns of generic manufacturers • Looking to brand manufacturers to waive metrics • Accepting short dated products • Continuously refreshing our business continuity plans – Recent developments in our Newburgh, New York distribution center – National Distribution Center business continuity plan
Collaborating with Government Agencies • Pop Up Hospitals, expansions • The Strategic National Stockpile • Addressing grey market activity and our role with HHS OIG 10 4/9/20 Confidential
Working Together with Our Customers Current Factors Influencing Healthcare Supply Chain • Surge ordering across all Classes of Trade early during the COVID-19 spread • As manufacturing hubs like China and India continue to experience the effects of a global pandemic, manufacturers are allocating inventory to wholesalers to sustain the supply chain on a long-term basis • Travel bans decrease capacity of air freight carriers • Supply Chain players continue to implement business continuity plans • COVID-19 potential treatments include experimental drugs and existing drugs indicated for other conditions (Need to balance existing patient treatment for chronic conditions)
Access to the Latest Resources for Manufacturers and Customers Oncologysupply.com/Resources/covid19 response AmerisourceBergen.com/coronavirus- WeAreGNP.com/COVID19 Or covid-19-information Besse.com/pages/products- specialties/product-resources/covid-19- response 12 4/9/20 Confidential
Q & A Please submit questions directly in the Skype window
We are united in our responsibility to create healthier futures.
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