Prescription drug wholesalers aid in the distribution of prescription drugs. They are responsible for buying and selling prescription drugs to pharmacies, hospitals, and other healthcare facilities. Wholesalers play a vital role in ensuring that prescription drugs are available to patients when they need them.

But if you want to become a prescription drug wholesaler in California, there are several steps you’ll need to take before you can do so. The process can seem daunting, but the following information can help you navigate it easily. Continue reading as we cover all the licensing requirements for CA prescription drug wholesalers so you can get started on your application today!

What is a Prescription Drug Wholesaler License?

The California Prescription Drug Wholesaler or Nonresident Wholesaler License is required for any person or business that acts as a prescription drug wholesaler. Defined by the state as “a person or business that buys, sells, or trades prescription drugs in bulk,” a prescription drug wholesaler may include any person or business that distributes, brokers or transacts the sale or return of prescription drugs and devices in California. More specifically, prescription drug wholesalers sell and distribute prescription-required drugs and devices to other entities authorized by law to purchase them or to licensed healthcare providers who are legally allowed to possess them.

Hospitals and other medical facilities usually purchase their drugs from wholesalers. The drugs are then dispensed to patients by hospital pharmacists or other medical professionals. In some cases, patients may also purchase their drugs directly from a wholesaler. For example, some patients may be able to buy dialysis equipment from a wholesaler instead of through a healthcare provider or pharmacy. In this way, prescription drug wholesalers ensure that patients have access to the drugs and equipment they need to improve their quality of life.

The importance of a prescription drug wholesaler’s role in providing access to vital medication cannot be overstated, but such a business must be monitored and closely regulated. As such, before you can operate as one in California, you must be licensed by the California State Board of Pharmacy. The Board issues licenses to wholesalers and establishes the requirements you must meet to operate legally.

How to Become a Licensed Prescription Drug Wholesaler in California

Whether or not you reside in California or your business is based in California, you must have a license from the California State Board of Pharmacy to operate as a prescription drug wholesaler anywhere in the state. In what follows, we will detail the steps you need to take to obtain the California Prescription Drug Wholesaler License or the Nonresident Prescription Drug Wholesaler License.

California Prescription Drug Wholesaler License

The steps to apply for a California Prescription Drug Wholesaler License are as follows:

Step 1: Submit a Wholesaler Application and Processing Fee.

To begin the licensure process, first, you must submit a completed California Wholesaler Application along with the applicable processing fee. Be sure to fill out all portions of the application, or the Board will reject your application, and you will need to start the process over again. You can submit the application and fees online or by mail.

Step 2: Submit the Appropriate Wholesaler Ownership Documents.

The next step is to submit the appropriate ownership documents, which will vary depending on the type of business entity you operate. For instance, if you apply as a sole proprietor, you must submit a Personal History Statement. If you apply as a corporation, you must submit Corporate Documents, such as your Articles of Incorporation. You can find a complete list of the required documents on the application.

Step 3: Fingerprint Requirements.

Applicants must also submit fingerprint verification as part of the licensure process. The fingerprints will be used to conduct a criminal background check. Each person required to complete a Personal Background Affidavit (as instructed in Section C of the application) is required to complete the Live Scan or submit two Board-approved fingerprint cards for a criminal background check with the Department of Justice (DOJ) and Federal Bureau of Investigation (FBI).

Step 4: Purchase a Surety Bond.

In most cases, applicants must purchase a CA Prescription Drug Wholesaler or Nonresident Wholesaler Bond with a bond amount of $100,000 (or submit another type of security). However, if the company had an annual gross income of $10 million or less in the previous tax year, it may post a $25,000 surety bond instead. The bond must be issued by a company that is licensed to do business in California and must be submitted to the Board prior to the issuance of a license.

Nonresident Prescription Drug Wholesaler License

Fortunately, the steps to obtain a Nonresident Prescription Drug Wholesaler License in California are similar to those required for resident wholesalers.

The most notable difference is to be sure to submit the correct application form, which would be the Nonresident Wholesaler Application.

Then, obtain and submit the required wholesaler ownership documents, fingerprints, and a $100,000 Prescription Drug Wholesaler Bond. These requirements are the same for resident and nonresident prescription drug wholesalers.

How to Get Your $100,000 Surety Bond

If you are required to post a Prescription Drug Wholesaler Bond to get your license, you can easily apply for your free quote with South Coast Surety. While the required bond amount is usually $100,000, you will not be required to pay that amount to obtain your bond. Instead, the price you pay for your bond will be a small percentage of the total bond amount and is determined by a variety of factors, including your credit score.

For example, getting the required $100,000 Prescription Drug Wholesaler Bond at South Coast Surety is quick and easy. Simply apply online, and if you have optimal financials and good credit, your premium could be as little as 1% of the bond amount.

After purchasing your bond, you will receive the original document. Most obligees require the principal to sign the original bond document and then file the bond directly with the obligee, typically by mailing it to them. However, every obligee has different filing requirements, so always check with your obligee before doing anything with your bond.

After you file your bond, the Board can issue your Prescription Drug Wholesaler License. Once licensed, you can begin to operate in California.

If you still have questions about how to get your California Prescription Drug Wholesaler Bond, please contact us at 1-800-361-1720. We’re happy to help!

Key Takeaways

• A California Prescription Drug Wholesaler or Nonresident Wholesaler License is required for any person or business that buys, sells, or trades prescription drugs in the state of California.
• To apply for a California Prescription Drug Wholesaler License or Nonresident Wholesaler License, you will need to fill out the appropriate application, submit the correct business ownership documents, submit fingerprints, and obtain a surety bond.
• In most cases, prescription drug wholesalers in California must purchase a $100,000 Prescription Drug Wholesaler Surety Bond.
• The price you pay for your bond will be a percentage of the total bond amount and is determined by factors like your credit score. Applicants with excellent credit may see premium quotes starting as low as 1% of the bond amount.