Section 140. Due diligence

A. Prior to the initial purchase of prescription drugs from another wholesale distributor not residing and licensed in Virginia, a wholesale distributor shall obtain, and update annually, the following information from the selling wholesale distributor:

1. A copy of the license to wholesale distribute from the resident state;

2. The most recent facility inspection report, if available;

3. A list of other names under which the wholesale distributor is doing business, or was formerly known as;

4. A list of principals, directors, officers, or any shareholder who owns 10% or more of outstanding stock in any nonpublicly held corporation;

5. A list of all disciplinary actions by state and federal agencies;

6. A description, including the address, dimensions, and other relevant information, of each facility or warehouse used for drug storage and distribution; and

7. A listing of any manufacturers for whom the wholesale distributor is an authorized distributor of record.

B. If the selling wholesale distributor's facility has not been inspected by the resident board or the board's agent within three years of the contemplated purchase, the purchasing wholesale distributor may conduct an inspection of the wholesale distributor's facility prior to the first purchase of drugs or devices from another wholesale distributor to ensure compliance with applicable laws and regulations relating to the storage and handling of drugs or devices. A third party may be engaged to conduct the site inspection on behalf of the purchasing wholesale distributor.

C. Prior to the first purchase of drugs from another wholesale distributor not residing in and licensed in Virginia, the purchasing wholesale distributor shall secure a national criminal background check of all of the wholesale distributor's owners, corporate officers, and the person named as the responsible party with the resident board or licensing agency.

Historical Notes

Derived from Volume 22, Issue 24, eff. September 6, 2006.

Statutory Authority

§§ 54.1-2400 and 54.1-3307 of the Code of Virginia.