Superior Detection of Drug Abuse
FDA-Cleared Hair Tests
PSYCHEMEDICS CORPORATION
The World’s Largest Provider of Drug Testing Using Hair Analysis
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Founded in 1987 following 10 years of research
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Over 20 years of successfully serving corporate clients
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Wholly dedicated to hair testing for drugs of abuse
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Public company listed on American Stock Exchange (PMD)
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Six US patents on our technology as well as foreign patents
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Thousands of corporate clients from a broad cross-section of US
business
Nation’s Largest Law Enforcement Agencies
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New York City Police
Chicago Police
Boston Police
San Francisco Police
Los Angeles Police
Department of Corrections in several states
DRUG TESTING IS VITALLY IMPORTANT
TO BUSINESS MANAGEMENT TODAY
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76% of all drug users are employed (10.2 million workers)
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44% of drug users admit to selling drugs to co-workers
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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
SUBSTANCE ABUSE COST TO EMPLOYERS
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Accidents
Productivity
Absenteeism
Turnover
Discipline
Product Quality
Customer Service
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Workers’ Compensation
Health Insurance Costs
Life Insurance Costs
Disability Insurance
Rehabilitation Program
Employee Theft
Workplace Violence
The actual cost of the test itself is the smallest
component.
Economics favor the more effective test.
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
2001 no 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.”
THE TESTING METHOD
YOU SELECT IS EQUALLY IMPORTANT
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True cost savings if people can beat the test?
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Impact on morale if people know that the test can be beaten
and is being beaten?
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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.
HUMAN HAIR MODEL
Structure of Hair
PANELS TESTED
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Test detects major drugs of abuse
-Marijuana
-Cocaine (incl. Crack )
-Opiates (incl. Heroin & Oxycodone)
-PCP
-Amphetamines (Methamphetamine, Ecstasy MDMA & MDEA)
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Standard test provides approximately 90-days of drug use
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All positive screens confirmed by Mass Spectrometry
(primarily tandem mass spectrometry)
ADVANTAGES OVER URINALYSIS
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Wider window of detection
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Greater accuracy in detecting drugs of abuse
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Quantitative and historical information
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Resistance to evasion
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Non-Intrusive sample collection
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Ease of administering random testing
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Follow-Up testing provides a safety net
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Cost effectiveness
ADVANTAGES OVER URINALYSIS
WIDER WINDOW OF DETECTION
Blood
Saliva
Urine
Hair
-100
-80
-60
-40
Days of Usage Analyzed
-20
0
ADVANTAGES OVER URINALYSIS
ACCURATE DETECTION OF DRUGS OF ABUSE
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Hair testing identifies:
 Heroin users
– 6 MAM detection not practical in urine
 Ecstasy users
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Hair testing is not fooled by:
 Vicks Inhaler (L-Methamphetamine)
 Poppy seeds do not register as positive in hair
ADVANTAGES OVER URINALYSIS
RESISTANCE TO EVASION
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Easiest method to beat urine test: ABSTAIN FOR 3 DAYS
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Ways to beat the urine test widely publicized
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Drug-free urine and adulterants can be purchased easily
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Hair samples cannot be substituted, adulterated or diluted
when properly performed
ADVANTAGES OVER URINALYSIS
NON-INTRUSIVE SAMPLE COLLECTION
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Less demeaning and embarrassing to applicant/employee
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Cosmetically undetectable
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100% observed collection for a true chain-of-custody
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No refrigeration required
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Easy handling and shipment - Not a bio-hazard
Random Testing With Hair
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Longer Time Window
 Hair provides the coverage of approximately 30 urine tests
or 90 oral fluid samples
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Resistance to Evasion
 Users can substitute clean urine to evade a random,
even with a secure collection facility
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Faster collection
 Employees are on the clock for a random test
 Urine tests give donor time to provide a sample
 Secure urine facilities sometimes require travel time to
off-site collector
ADVANTAGES OVER URINALYSIS
NO-WAIT COLLECTION
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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
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No special facilities are needed to prevent evasion
 Urine collection requires a secure lavatory
ADVANTAGES OVER URINALYSIS
FOLLOW-UP TESTING – A SAFETY NET
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Ability to repeat the collection without changing the time
frame of the original test
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Virtually eliminates concerns of lab error or sample mix-up
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Follow-up testing avoids conflict if challenged
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Unprecedented safeguard for the donor
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Not possible with urine
Worldwide Testing
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Hair samples are easily shipped around the world
 Consistent testing for all employees at all facilities
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Result reporting by secure web site facilitates international
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Collection materials and training video now available in
English, Spanish, and Portuguese
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Collection sites available in the UK, Mexico, and Brazil
 Psychemedics will identify sites in additional countries
on request
STEELCASE CORPORATION
RESULTS FROM
URINE VS. HAIR COMPARISON
(Sample Size = 774)
Percent Positive
Cocaine
Urine
0.5%
Hair
8.4%
Marijuana
0.5%
3.5%
Other Drugs
1.7%
6.1%
Overall Positives
2.7%
18.0%
JOHNSON CONTROLS
AUTOMOTIVE SYSTEMS GROUP
RESULTS FROM
URINE VS. HAIR COMPARISON
(Sample Size = 108)
Percent Positive
Cocaine
Urine
0.0%
Hair
7.4%
Marijuana
1.7%
7.4%
Overall Positives
1.7%
14.8%
GENERAL MOTORS
RESULTS FROM
URINE VS. HAIR COMPARISON
(Sample Size = 117)
Percent Positive
Cocaine
Urine
0.0%
Hair
5.9%
Marijuana
3.4%
12.8%
Other Drugs
1.7%
1.7%
Overall Positives
5.1%
20.4%
PPG INDUSTRIES
RESULTS FROM
URINE VS. HAIR COMPARISON
(Sample Size = 661)
40
35
30
25
20
15
10
5
0
Urine
Hair
BMW MANUFACTURING CORPORATION
RESULTS FROM
URINE VS. HAIR COMPARISON
(Sample Size = 600)
30
25
20
15
10
5
0
Urine
Hair
MAJOR DRILLING COMPANY
2004
2005
2006
GRAND
TOTAL
Tested
Failed Urine Drug Test
Failed Hair Drug Test
492
10
92
{2.0%}
{18.7%}
16
117
{2.0%}
{14.3%}
11
72
{1.7%}
{11.4%}
37
281
{1.9%}
{14.5%}
819
631
1942
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
MONTH
SAMPLES PROCESSED
USERS
COC
OPI
PCP
AMP
THC
POLY USERS
POSITIVE RATE
Apr-07
1,077
96
71
6
0
6
23
9
8.9%
8
0
9
32
15
6.9%
7
3
9
36
16
8.3%
5
4
7
25
10
5.3%
5
1
8
39
13
6.3%
8
3
8
44
21
6.1%
8
1
11
51
11
6.8%
9
1
15
46
21
6.4%
4
2
7
21
11
5.9%
60
15
80
317
127
6.6%
BP only
May-07
{74%}
1,435
99
BP only
Jun-07
{71%}
1,524
128
BP only
Jul-07
2,137
113
2,681
170
2,977
182
3,046
208
2,528
162
114
{70%}
1,919
114
BP and DOW
GRAND TOTAL
150
{72%}
BP and DOW
Dec-07
144
{79%}
BP and DOW
Nov-07
131
{77%}
BP and DOW
Oct-07
82
{73%}
BP and DOW
Sep-07
90
{70%}
BP and DOW
Aug-07
70
94
{82%}
19,324
1272
946
{74%}
BUYER BEWARE
All hair testing is NOT the same
Psychemedics has NOT LICENSED its patented
technology
Only Psychemedics offers the Psychemedics Patented
Hair Test
CRITICAL REQUIREMENTS
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100% of drug released from the hair and measured
Most sensitive screening test
Eliminates external contamination as source of positives
Significantly smaller amount of hair required
Can’t beat the test with cleansers
Process removes melanin to avoid even appearance of
hair color bias
Eliminates chances of false positives from normal
over-the-counter medications (D&L Isomers)
Only FDA clearance for both head and body hair
PROVEN WASH PROCEDURE TO REMOVE AND
ACCOUNT FOR ANY EXTERNAL CONTAMINATION
INCLUDING THE TESTING OF THE LAST WASH
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Numerous studies demonstrate the effectiveness of
Psychemedics wash procedure and the ineffectiveness of
others
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Effective elimination of external contamination requires a
combination of:
– Wash procedure
(3hrs. 45min.)
– Analysis of the wash
– Metabolite identification
– Cutoff levels
FULL FDA CLEARANCE
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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:
 Psychemedics was the 1st 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
AN EXTENSIVE LEGAL TRACK RECORD
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Psychemedics hair analysis methods have been upheld in
numerous workplace cases.
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No other lab can match this extensive legal track record
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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
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Psychemedics’ hair analysis has been routinely admitted and
upheld by state courts, federal courts, military courts,
administrative agencies and in arbitration
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Psychemedics’ hair testing is used by court systems
RESULT REPORTING SYSTEMS MADE EASY
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Negative results within 24 hours of receiving the sample
 Positives in 3-4 days (following MS confirmation)
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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)
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All reports available in full detail or summary form
Superior Detection of Drug Abuse
FDA-Cleared Hair Tests