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NEWS AND INFORMATION
Health Pathways™ Introduces Audit Services Division

A Due Diligence Process to
Protect U.S. Pharmaceutical Distribution System Integrity Against Counterfeits

GAITHERSBURG, MD—November 17, 2003— Health Pathways, Inc. announced that it has formed the Health Pathways Audit Services™ division. The Health Pathways Audit Services division will assist the distribution channel in assuring medical product distribution system integrity and product safety. The Audit Services division will perform annual third party distribution system audits to verify compliance with federal and state regulations and the implementation of the Recommended Guidelines for Pharmaceutical Distribution System Integrity recently approved by HDMA to respond to growing threats to patient safety from counterfeited pharmaceutical products.

Health Pathways will perform audit services for the U.S. Pharmaceutical Distribution System with the majority of the customer base initially being the progressive Pharmaceutical manufacturers and Biotech companies acting responsibly to assure patient safety from this growing counterfeit threat.

As Mark McClellan, M.D., the Food and Drug Administration (FDA) Commissioner, recently stated during a video conference with attendees at the Healthcare Distribution Management Association (HDMA) annual meeting, “The number of discovered counterfeit drugs in the U.S. has increased four fold in the last decade. The counterfeiters are getting smarter and more sophisticated.”

Dr. McClellan further stated, “I applaud the HDMA members for adopting Guidelines to insure patient safety by setting standards for which all will need to comply”.

The Health Pathways Audit Services procedures combine the “best in breed” audit procedures from six industries with the specificity from within the Healthcare industry. The audit teams, configured with five disciplines, will perform their duties in a supportive role for the distribution system to identify ways that counterfeits may be penetrating the distribution system and to close those gaps.

“Health Pathways’ objective is to support the industry’s implementation of the recently adopted HDMA Recommended Guidelines for Pharmaceutical Distribution System Integrity to curtail the introduction of counterfeits into our distribution system and thereby reduce the patient safety risk of such counterfeit products and sustain the viability of the current distribution system for healthcare products in the United States” said J. Randall Hoggle, President/CEO of Health Pathways, Inc. “The feedback from the pharmaceutical manufacturers and biotech companies on our decision to add this service division and corresponding audit procedures is very strong. With a knowledgeable independent third party performing consistent non-biased assessments of these guidelines, the industry is taking a major step to authenticate all distribution sources in the legitimate U.S. pharmaceutical distribution system.”

Health Pathways welcomes all pharmaceutical manufacturers and biotech companies to attend introductory sessions on the audit procedures and processes. During these sessions the Health Pathways Audit Services team will be reviewing the beta site test procedures findings. These introductory sessions will be held on Tuesday, December 2, 2003 at the Health Pathways headquarters in Gaithersburg, Maryland and Tuesday, December 9, 2003 in a Trenton, New Jersey location.


About Health Pathways, Inc.

Health Pathways, Inc.™ is a U.S. based privately held Healthcare Services and Products Holding Company headquartered in Gaithersburg, Maryland. Health Pathways focuses on "Accelerating Healthcare Innovation" through a series of five divisions. Health Pathways Investment Group provides working capital for promising technologies and services start-ups. The NetHealth Trust™ division provides workflow process improvement and business automation for government and commercial customers. The MedSolution Networks division provides Medical Imaging Management services for clinical trials to accelerate the determination of clinical trial eligibility and exchange of medical imaging information. biosciences Corporation® division provides business advisory and medical product development expertise for biotech companies and investors. Health Pathways Audit Services™ division assists the distribution channel in assuring medical product distribution system integrity and product safety.

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Contact:

Mathias Neumann
Health Pathways, Inc.
101 Orchard Ridge Drive
Suite 1N
Gaithersburg, Maryland 20878
(301) 216-3912, ext. 222
mneumann@healthpathways.com

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