Pharmaceutical Dealer / Supplier Bond
Pharmaceutical Wholesale Dealers are any person engaged in the wholesale distribution of prescription drugs. This includes companies that repackage, private label distributors, manufacturers, warehouses, and retail pharmacies that conduct wholesale distribution.
In an effort to protect the drug distribution system and to prevent the introduction and retail sale of counterfeit, misbranded, sub potent, and expired drugs, Congress enacted the Prescription Drug Marking Act (PDMA). The measure bans the re-importation of prescription drugs manufactured in the United States, distribution of drug samples by anyone other than the manufacturer or its authorized distributor, requires distributors to provide the purchasing wholesaler with a statement that identifies each prior sale of the drugs (known as “drug pedigree), and lastly, no person may contract in wholesale distribution of prescription drugs in interstate commerce without being licensed by a state, in accordance with the Code of Federal Regulations 21 C.F.R. Part 205.
A number of states now require wholesale distributors to obtain a pharmaceutical wholesale dealer surety bond to ensure that the individual or legal entity is going to comply with state and federal laws put forth for pharmaceutical distribution companies.
The bond amount varies from state to state. Most bond amounts are set at $100,000. To find out what the exact bond requirement is for your respective state, please contact the Board of Pharmacy.
The bond rate ranges anywhere from 1.5% to 2% of the bond amount for premium, based on approved credit. Financial statements are required on bond amounts of $100,000 or greater. If credit is less than perfect, we can still approve you for a surety bond at a higher rate ranging anywhere from 5% to as high as 20% of the bond amount for premium.