How much does a wholesale pharmaceutical distributor bond cost in Maryland?
Maryland wholesale pharmaceutical distributor bond amounts vary based on a pharmacy’s gross sales in the last fiscal year. Wholesale distributors with gross sales under $10,000,000 last year must post a $50,000 bond, but wholesalers with $10,000,000 or more in gross sales last year are required to post a surety bond in the amount of $100,000.
The price of this bond is based on a soft review of the applicant’s personal credit report. Highly qualified applicants can expect to pay the minimum of 1-4% of the required bond amount.
Why do I need this bond?
A wholesale distributor of pharmaceuticals delivers medications to pharmacies at wholesale prices. Maryland wholesale distributor bonds ensure that distributors pay all of their taxes and any other necessary fees. This specific bond also allows patients, pharmacies, hospitals and the state to file a claim against the distributor if they suffer financial losses as a result of the distributor’s professional misconduct.
What’s the fine print?
Maryland wholesale distributor surety bonds are required by the State of Maryland Board of Pharmacy and remain effective until canceled. If the surety chooses to cancel the bond, it must provide the state with at least 30 days of notice prior to cancellation.
How to become a wholesale pharmaceutical distributor in Maryland
According to the Code of Maryland Annotated Regulations 10.34.22, the following information must be included on the license application:
- the type of business (corporation, sole proprietorship, partnership, etc.)
- the name, address and phone numbers of either the individual or of all corporate officers
- all trade or business names used by the company other than the name used by the permit holder
- a list of federal or state licenses allowing the applicant to purchase, possess or distribute pharmaceuticals
- a list of any legal or professional disciplinary actions taken against you, your company or any of your officers
- a full description of the facilities, including square footage, security systems, terms of lease, address and any other information that the board may require
All applicants are also required to submit to a criminal background check.