Maryland Wholesale Pharmaceutical Distributor Bond
A quick guide to one of the most important permit requirements for wholesale pharmaceutical distributors!
What is a Wholesale Pharmaceutical Distributor Bond?
The Maryland Board of Pharmacy requires wholesale pharmaceutical distributors to apply for a permit prior to engaging in the business of wholesale distribution of prescription drugs or prescription devices.
The surety bond will serve as an assurance to the governing authority that the wholesale pharmaceutical distributor will faithfully comply with the Health Occupations Article of the Annotated Code of Maryland and other relevant rules while conducting business within the state.
When a wholesale pharmaceutical distributor fails to perform the tasks in a lawful manner, the person who will suffer damages due to the noncompliance of the permittee will be eligible for a financial compensation through a bond claim.
A wholesale distributor includes the following:
- Own-label distributor
- Private-label distributor
- Drug wholesaler or distributor
- Independent wholesale drug trader
- Manufacturer’s exclusive distributor or an authorized distributor of record
- Third party logistics provider
- Retail pharmacy that conducts wholesale distribution
- Pharmacy warehouse that conducts wholesale distribution
What is the Wholesale Pharmaceutical Distributor Bond amount?
The bond amount will depend on the annual gross receipts of the applicant for the previous tax year.
|ANNUAL GROSS RECEIPTS||BOND AMOUNT|
|Less than $10,000,000||$50,000|
|$10,000,000 or more||$100,000|
If you have a stellar credit score, you will be eligible to pay a low bond premium, or just 1% of the bond amount!
Do you want to know your bond premium? Get your FREE SURETY BOND QUOTE RIGHT HERE!
How can I get a Wholesale Pharmaceutical Distributor Bond?
SEND US A BOND APPLICATION – We begin the bonding process with an application. You may send your surety bond application HERE.
UNDERWRITING– Once we have received your application, an underwriter will ask you to submit the following important requirements:
- Proof of your financial capability
- Your business’ history
- Your credit score
In order to avoid any delay, make sure that your requirements are complete prior to submitting them.
ISSUANCE– As soon as the underwriter has completed the necessary in-depth check, we will immediately issue the surety bond and send it to you.
What are the surety bond conditions?
- The surety bond should be issued by a surety bond agent or company that is authorized to conduct business in the State of Maryland
- The surety bond should be made payable to the State Board of Pharmacy
- The wholesale pharmaceutical distributor is obligated to obey the provisions of the Health Occupations Article of the Annotated Code of Maryland as well as the rules and regulations of the Maryland Board of Pharmacy
- If the wholesale pharmaceutical distributor commits a violation, the aggrieved party will be eligible to file a claim against the bond