§ 32.1981

32-1981. Definitions In this article, unless the context otherwise requires: 1. ' Chain pharmacy warehouse' means a physical location for prescription-only drugs that acts as a central warehouse and that performs intracompany sales or transfers of the prescription-only drugs to a group of pharmacies that are under common ownership or control. A chain pharmacy warehouse is not limited to the distribution of prescription-only drugs under this article. 2. ' Company under common ownership' has the same meaning as affiliated group as defined in 26 United States Code section 1504. 3. ' Intracompany transaction' means any sale, transfer or trade between a division, subsidiary, parent or affiliated or related company under the common ownership of a person. 4. ' Normal distribution channel' means the chain of custody for a prescription-only drug that begins with the delivery of the drug by a manufacturer to a wholesale distributor who then delivers the drug to a pharmacy or a practitioner for final receipt by a patient. Normal distribution channel includes the receipt of a prescription-only drug by a common carrier or other delivery service that delivers the drug at the direction of a

for final receipt by a patient. Normal distribution channel includes the receipt of a prescription-only drug by a common carrier or other delivery service that delivers the drug at the direction of a manufacturer, full service wholesale permittee or pharmacy and that does not purchase, sell, trade or take title to any prescription-only drug. 5. ' Wholesale distribution' means distribution of a drug to a person other than a consumer or patient. Wholesale distribution does not include: (a) Any transaction or transfer between any division, subsidiary, parent or affiliated or related company under common ownership and control of a corporate entity. (b) Selling, purchasing, distributing, transferring or trading a drug or offering to sell, purchase, distribute, transfer or trade a drug for emergency medical reasons. For the purposes of this subdivision, ' emergency medical reasons' includes transferring a prescription drug by a community pharmacy or hospital pharmacy to another community pharmacy or hospital pharmacy to alleviate a temporary shortage. (c) Drug returns if conducted by a hospital, health care entity, retail pharmacy or charitable institution in accordance with 21 Code of

armacy or hospital pharmacy to alleviate a temporary shortage. (c) Drug returns if conducted by a hospital, health care entity, retail pharmacy or charitable institution in accordance with 21 Code of Federal Regulations section 203.23. (d) The sale of prescription drugs by a pharmacy, not to exceed five percent of the pharmacy's gross sales, to practitioners for office use. (e) Dispensing by a retail pharmacy of prescription drugs to a patient or patient's agent pursuant to the lawful order of a practitioner. (f) Distributing a drug sample by a manufacturer's representative. (g) Selling, purchasing or trading blood or blood components intended for transfusion.