Both federal and state authorities have a strong interest in regulating the drug industry. Extensive licensing requirements are implemented in pursuit of protecting the public against potentially harmful drugs.
Licenses are issued by the Federal Drug Enforcement Agency as well as the Boards of Pharmacy in each state. With very few exceptions, all states require distributors to be licensed even if they are located out-of-state.
A handful of states require businesses to become Verified-Accredited Wholesale Distributors as a prerequisite to licensure. These applications may include a lengthy form, a fee, and extensive supporting documentation such as bonding or proof of insurance. Further, to remain in compliance, licensees are required to file renewals as often as each year.
Businesses functioning without the proper license are generally penalized based on the size of the operation and the gravity of the offense.