Pharmacy wholesaler bond cost
The California State Board of Pharmacy requires wholesalers and nonresident wholesalers to post surety bonds prior to conducting business.
If the wholesaler’s gross annual receipts amount to $10,000 or less, the required bond amount is $25,000. If the wholesaler’s gross annual receipts amount to more than $10,000, the required bond amount is $100,000.
Why this bond
Pharmacy wholesaler bonds discourage wholesalers of pharmaceutical grade drugs from conducting unethical or fraudulent business. Under this bond, pharmacy wholesalers must refrain from doing the following:
- Failing to pay a fine issued by the board
- Distributing a drug to an unauthorized person
- Failing to confirm licensure from sources of dangerous drugs
- Operating without a license
- Misrepresenting self on license application forms
- And more
If the principal (wholesaler) violates any of the terms of the bond agreement and consumers are harmed, the surety will compensate harmed parties for any financial losses up to the full bond amount. The principal is required to fully reimburse the surety in a timely manner.
Pharmacy wholesaler bond details
Nonresident wholesalers in California are mandated by the California State Board of Pharmacy to post a surety bond. These bonds remain valid for the duration of the wholesaler’s license, which must be renewed every 2 years. In the event of cancellation, the surety must give the obligee written notice 30 days prior to the effective termination date.
Become a pharmacy wholesaler
Pharmacy wholesalers in California must have a license before they can legally sell or distribute dangerous drugs to other businesses. Licensing regulations vary depending on the wholesaler’s residence status.
Pharmacy wholesaler licenses run for a period of 2 years. To remain in operation, wholesalers must submit a license renewal request prior to the expiration of their licenses. In addition to the renewal request, an applicant must provide proof of 30 hours of pharmacy education over the past 2 years. Late renewals will be subject to penalty fees and the license will be canceled if it is not renewed within 3 years of the expiration date.Take the first step toward getting licensed by requesting your free surety bond quote now!
Apply for your surety bond
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