What is a California Pharmacy Wholesaler Bond?
Pharmacy Wholesalers in California are required to be licensed by the California State Board of Pharmacy before selling or distributing pharmaceuticals to other businesses. A pharmacy wholesaler bond is required as a part of the licensing process.
Who Needs a California Pharmacy Wholesaler Bond?
Any pharmaceutical distribution companies that wish to sell to other businesses must be fully licensed. Both resident and nonresident wholesalers are required to post a California pharmacy wholesaler bond before conducting business within the state.
The amount of the surety bond is dependent upon the gross annual receipts of the company. Companies that total $10,000 or less are required to be bonded for $25,000. Companies that gross more than $10,000 are required to be bonded for $100,000.
Why Do I Need a California Pharmacy Wholesaler Bond?
California pharmacy wholesaler bonds are designed to discourage unethical or fraudulent business practices for pharmacy wholesalers. Under the state regulations and terms of this bond, wholesalers are prohibited from:
- Failing to pay any fines or fees issued by the California State Board of Pharmacy
- Dispensing any pharmaceuticals to unauthorized persons
- Failing to confirm the licensure for sources of controlled and potentially dangerous drugs
- Operating without a valid license
- Misrepresenting oneself or the business on any related licensing forms
If the pharmacy wholesaler violates any of these or other terms and consumers are harmed, the harmed parties can make a claim against the bond, up to the full bonded amount. If the principal is found to be at fault, he or she becomes responsible for reimbursing any damages and legal fees paid by the surety.
How Much Does a California Pharmacy Wholesaler Bond Cost?
California pharmacy wholesaler bonds are subject to underwriting consideration, and therefore the cost of the bond will vary based on the credit rating of the principal.
Pharmacy wholesaler licenses run for two years, and the surety bond runs in conjunction with the license. Both must be renewed every two years.
Get Started Today!
To operate a pharmacy wholesale business in California, you must first purchase a pharmacy wholesaler bond. Don’t delay your application.