Brief Summary
Most Class 1 wholesalers applying in Oregon have one decision to make first: hold NABP Drug Distributor Accreditation, formerly VAWD, or post a $100,000 surety bond for each location. If accreditation is not in hand yet, the bond is the faster path to registration. You pay a premium instead of tying up $100,000 per site, and the bond goes in with the Board of Pharmacy application.
Under OAR 855-065-0006(8), an applicant for Oregon Class 1 Wholesaler registration that does not hold NABP Drug Distributor Accreditation (formerly VAWD) must file a surety bond of at least $100,000. A separate bond is required for each location, and the Oregon Board of Pharmacy must be named as sole beneficiary. The bond secures payment of Board penalties, fees and costs left unpaid for more than 30 days.
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Detailed Information About the Oregon Class 1 Prescription Drug Wholesaler Registration Bond:
Who has to post this bond
The Oregon Board of Pharmacy registers Class 1 wholesalers, meaning businesses that sell or distribute prescription drugs at wholesale to pharmacies and other licensed drug outlets, whether located in Oregon or shipping in from out of state. OAR 855-065-0006(8) requires every applicant that has not received Drug Distributor Accreditation from the National Association of Boards of Pharmacy to provide a surety bond. That accreditation was formerly called VAWD, and the rule and application still refer to it that way.
If you already hold current accreditation, you submit proof of it and do not need the bond. If accreditation is pending, the bond is how you get registered in the meantime.
One bond per location
The Board's surety bond memo is clear that a separate $100,000 bond is required for each location. A company with three distribution centers shipping into Oregon needs three bonds, each naming the full name and physical address of its location as principal.
What the bond secures
The bond pays administrative penalties imposed by the Board and fees and costs the Board incurs, when they relate to the registration, are authorized under Oregon law and remain unpaid for 30 days after they become final. The Board can bring a claim against the bond up to one year after the registration is no longer valid, or 60 days after any related administrative or judicial proceeding concludes, whichever is later.
Fees, form and renewal
The Board does not supply a bond form. Your surety prepares it, and it must list the principal's full name and physical address, name the Oregon Board of Pharmacy as sole beneficiary and state the $100,000 amount. The current application lists a $735 nonrefundable application fee, or $875 if the facility handles controlled substances. Registration expires September 30 each year, so keep the bond in force through every annual renewal.
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