Maryland Adopts Law Requiring Accreditation for Nonresident Wholesale Drug Distributors; 22 States Recognize VAWD

Originally published in the August 2010 NABP Newsletter

Nonresident drug wholesalers that wish to do business in the state of Maryland must now obtain accreditation from a Maryland Board of Pharmacy-approved accreditation body or be licensed and inspected by a state with substantially equivalent licensing requirements to Maryland. The State Board of Pharmacy –Wholesale Distributor Permitting and Prescription Drug Integrity Act (PDF)stipulating these requirements, was signed into law by Governor Martin O’Malley on May 4, 2010.

The NABP Verified-Accredited Wholesale DistributorsCM (VAWDCM) accreditation is currently the only Maryland Board of Pharmacy-approved accreditation. Of the 22 states that recognize VAWD, Indiana, North Dakota, and Wyoming require VAWD accreditation as a component of licensure. Maryland now also requires VAWD for wholesalers who are domiciled in states that do not have laws substantially equivalent to Maryland’s.

In addition, 16 states are currently deemed by the Maryland Board of Pharmacy as meeting its criteria for licensing drug wholesalers. Wholesalers currently licensed to conduct business in Maryland will receive notification about the new requirement as their renewal dates approach. The Board intends to strictly enforce the legislation, and its efforts will help to secure the prescription drug supply chain, protecting the public from contaminated, diverted, or counterfeited drugs.

VAWD accreditation helps ensure that the wholesale distribution facility operates legitimately, is licensed in good standing, and is employing security and best practices for safely distributing prescription drugs from manufacturers to pharmacies and other institutions. To obtain VAWD accreditation, wholesale distributors undergo a criteria compliance review, including a rigorous review of their operating policies and procedures, licensure verification, survey of facility and operations, background checks, and screening through the NABP Clearinghouse.