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Superior Detection of Drug Abuse FDA-Cleared Hair Tests.

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Presentation on theme: "Superior Detection of Drug Abuse FDA-Cleared Hair Tests."— Presentation transcript:

1 Superior Detection of Drug Abuse FDA-Cleared Hair Tests

2 PSYCHEMEDICS CORPORATION The World’s Largest Provider of Drug Testing Using Hair Analysis  Founded in 1987 following 10 years of research  Over 20 years of successfully serving corporate clients  Wholly dedicated to hair testing for drugs of abuse  Public company listed on American Stock Exchange (PMD)  Six US patents on our technology as well as foreign patents  Thousands of corporate clients from a broad cross-section of US business


4 Nation’s Largest Law Enforcement Agencies n New York City Police n Chicago Police n Boston Police n San Francisco Police n Los Angeles Police n Department of Corrections in several states

5 DRUG TESTING IS VITALLY IMPORTANT TO BUSINESS MANAGEMENT TODAY n 76% of all drug users are employed (10.2 million workers) n 44% of drug users admit to selling drugs to co-workers n Each drug abuser costs their employer $7,000 to $10,000 per year:  $7,000 per National Institute of Justice study  $10,000 per United States Postal Service study THE FINANCIAL IMPACT ON BUSINESS IS STAGGERING

6 SUBSTANCE ABUSE COST TO EMPLOYERS n Accidents n Productivity n Absenteeism n Turnover n Discipline n Product Quality n Customer Service The actual cost of the test itself is the smallest component. Economics favor the more effective test. n Workers’ Compensation n Health Insurance Costs n Life Insurance Costs n Disability Insurance n Rehabilitation Program n Employee Theft n Workplace Violence


8 SIMEOUS FOODS INTERNATIONAL Workers comp costs before and after implementation of Psychemedics’ hair test: 1998$1,600,000 1999$ 400,000 (Implemented Psychemedics Hair Testing) 2000$ 175,000 2001no charges in first six month Over $3.4 million in cost reductions for workers comp alone Savings have continued with only $2,500 in claims in last 10 months, and no lost time accidents (2005) “We have also seen improvements in our turnover, absenteeism, productivity, and morale.”

9 THE TESTING METHOD YOU SELECT IS EQUALLY IMPORTANT n True cost savings if people can beat the test? n Impact on morale if people know that the test can be beaten and is being beaten? n Deterrent impact? Psychemedics’ patented hair analysis is a no-nonsense approach to drug testing Our superior detection capabilities also provide a powerful up-front deterrent to drug use in the workplace.


11 Structure of Hair

12 PANELS TESTED n Test detects major drugs of abuse -Marijuana -Cocaine (incl. Crack ) -Opiates (incl. Heroin & Oxycodone) -PCP -Amphetamines (Methamphetamine, Ecstasy MDMA & MDEA) n Standard test provides approximately 90-days of drug use n All positive screens confirmed by Mass Spectrometry (primarily tandem mass spectrometry)

13 ADVANTAGES OVER URINALYSIS n Wider window of detection n Greater accuracy in detecting drugs of abuse n Quantitative and historical information n Resistance to evasion n Non-Intrusive sample collection n Ease of administering random testing n Follow-Up testing provides a safety net n Cost effectiveness


15 ADVANTAGES OVER URINALYSIS ACCURATE DETECTION OF DRUGS OF ABUSE n Hair testing identifies: ä Heroin users –6 MAM detection not practical in urine ä Ecstasy users n Hair testing is not fooled by: ä Vicks Inhaler (L-Methamphetamine) ä Poppy seeds do not register as positive in hair

16 ADVANTAGES OVER URINALYSIS RESISTANCE TO EVASION n Easiest method to beat urine test: ABSTAIN FOR 3 DAYS n Ways to beat the urine test widely publicized n Drug-free urine and adulterants can be purchased easily n Hair samples cannot be substituted, adulterated or diluted when properly performed




20 ADVANTAGES OVER URINALYSIS NON-INTRUSIVE SAMPLE COLLECTION n Less demeaning and embarrassing to applicant/employee n Cosmetically undetectable n 100% observed collection for a true chain-of-custody n No refrigeration required n Easy handling and shipment - Not a bio-hazard

21 Random Testing With Hair n Longer Time Window ä Hair provides the coverage of approximately 30 urine tests or 90 oral fluid samples n Resistance to Evasion ä Users can substitute clean urine to evade a random, even with a secure collection facility n Faster collection ä Employees are on the clock for a random test ä Urine tests give donor time to provide a sample ä Secure urine facilities sometimes require travel time to off-site collector

22 ADVANTAGES OVER URINALYSIS NO-WAIT COLLECTION n Hair testing can be accomplished in minutes  Urine tests allow donors 3 hours or more to provide a sample  Delays add to expenses for collectors  Employee donors stay on the time-clock n No special facilities are needed to prevent evasion  Urine collection requires a secure lavatory

23 ADVANTAGES OVER URINALYSIS FOLLOW-UP TESTING – A SAFETY NET n Ability to repeat the collection without changing the time frame of the original test n Virtually eliminates concerns of lab error or sample mix-up n Follow-up testing avoids conflict if challenged n Unprecedented safeguard for the donor n Not possible with urine

24 Worldwide Testing n Hair samples are easily shipped around the world ä Consistent testing for all employees at all facilities n Result reporting by secure web site facilitates international n Collection materials and training video now available in English, Spanish, and Portuguese n Collection sites available in the UK, Mexico, and Brazil ä Psychemedics will identify sites in additional countries on request

25 RESULTS FROM URINE VS. HAIR COMPARISON (Sample Size = 774) STEELCASE CORPORATION Cocaine Urine 0.5% Hair 8.4% Marijuana0.5%3.5% Other Drugs1.7%6.1% Overall Positives2.7%18.0% Percent Positive

26 RESULTS FROM URINE VS. HAIR COMPARISON (Sample Size = 108) JOHNSON CONTROLS AUTOMOTIVE SYSTEMS GROUP Cocaine Urine 0.0% Hair 7.4% Marijuana1.7%7.4% Overall Positives1.7%14.8% Percent Positive

27 RESULTS FROM URINE VS. HAIR COMPARISON (Sample Size = 117) GENERAL MOTORS Cocaine Urine 0.0% Hair 5.9% Marijuana3.4%12.8% Other Drugs1.7% Overall Positives5.1%20.4% Percent Positive





32 Positive Rate Summary Report for Contractors BP Texas City Program Mandatory as of 4/01/07 Dow Freeport Program Mandatory as of 7/01/07 MONTHSAMPLES PROCESSEDUSERSCOCOPIPCPAMPTHCPOLY USERSPOSITIVE RATE Apr-07 1,07796 71 6062398.9% BP only{74%} May-07 1,43599 70 80932156.9% BP only{71%} Jun-07 1,524128 90 73936168.3% BP only{70%} Jul-07 2,137113 82 54725105.3% BP and DOW{73%} Aug-07 2,681170 131 51839136.3% BP and DOW{77%} Sep-07 2,977182 144 83844216.1% BP and DOW{79%} Oct-07 3,046208 150 811151116.8% BP and DOW{72%} Nov-07 2,528162 114 911546216.4% BP and DOW{70%} Dec-07 1,919114 94 42721115.9% BP and DOW{82%} GRAND TOTAL 19,324 12729466015803171276.6% {74%}

33 BUYER BEWARE All hair testing is NOT the same Psychemedics has NOT LICENSED its patented technology Only Psychemedics offers the Psychemedics Patented Hair Test

34 CRITICAL REQUIREMENTS n 100% of drug released from the hair and measured n Most sensitive screening test n Eliminates external contamination as source of positives n Significantly smaller amount of hair required n Can’t beat the test with cleansers n Process removes melanin to avoid even appearance of hair color bias n Eliminates chances of false positives from normal over-the-counter medications (D&L Isomers) n Only FDA clearance for both head and body hair

35 PROVEN WASH PROCEDURE TO REMOVE AND ACCOUNT FOR ANY EXTERNAL CONTAMINATION INCLUDING THE TESTING OF THE LAST WASH n Numerous studies demonstrate the effectiveness of Psychemedics wash procedure and the ineffectiveness of others n Effective elimination of external contamination requires a combination of: –Wash procedure (3hrs. 45min.) –Analysis of the wash –Metabolite identification –Cutoff levels

36 FULL FDA CLEARANCE n Federal regulations now require that workplace drug tests be “…approved, cleared or otherwise recognized by the Food and Drug Administration.” Following a most rigorous FDA review: n Psychemedics was the 1 st lab to receive FDA clearance for all five drug categories, and is the only lab to include body hair clearances –Some labs do not have FDA clearance –Other labs have recently obtained FDA clearance on only head hair

37 AN EXTENSIVE LEGAL TRACK RECORD n Psychemedics hair analysis methods have been upheld in numerous workplace cases. n No other lab can match this extensive legal track record n We offer substantial experience in expert testimony and litigation support for hair analysis, with in-house legal staff and expert witnesses dedicated to hair analysis n Psychemedics’ hair analysis has been routinely admitted and upheld by state courts, federal courts, military courts, administrative agencies and in arbitration n Psychemedics’ hair testing is used by court systems

38 RESULT REPORTING SYSTEMS MADE EASY n Negative results within 24 hours of receiving the sample  Positives in 3-4 days (following MS confirmation) n Your choice of reporting methods:  Internet access to results, chain-of-custody forms, and testing history  On-demand e-mail or fax of any current or historic result  Report immediately upon completion via e-mail or fax  Scheduled e-mail or fax  Automated telephone dial-in  Electronic transmission (EDI) n All reports available in full detail or summary form

39 Superior Detection of Drug Abuse FDA-Cleared Hair Tests

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