2006 Code of Virginia § 54.1-3401.1 - Practices not considered wholesale distribution

54.1-3401.1. Practices not considered wholesale distribution.

A. Wholesale distribution, as defined in 54.1-3401, shall not include:

1. Intracompany sales, including any transaction or transfer between anydivision, subsidiary, parent, and/or affiliated or related company under thecommon ownership and control of a corporate entity;

2. The purchase or other acquisition by a hospital or other health careentity that is a member of a group purchasing organization of a drug for itsown use from the group purchasing organization or from other hospitals orhealth care entities that are members of such organization;

3. The sale, purchase, or trade of a drug or an offer to sell, purchase, ortrade a drug by a charitable organization, described in 501 (c) (3) of theInternal Revenue Code of 1986 (26 U.S.C. 501 (c) (3)), to a nonprofitaffiliate of such organization to the extent otherwise permitted by law;

4. The sale, purchase, or trade of a drug or an offer to sell, purchase, ortrade a drug among hospitals or other health care entities that are undercommon control;

5. The sale, purchase, or trade of a drug or an offer to sell, purchase, ortrade a drug for emergency medical reasons;

6. The sale, purchase, or trade of a drug or an offer to sell, purchase, ortrade a drug, or the dispensing of a drug pursuant to a prescription;

7. The distribution of drug samples by manufacturers' representatives ordistributors' representatives; or

8. The sale, purchase, or trade of or the offer to sell, purchase, or tradeblood and blood components intended for transfusion.

B. For the purposes of this section:

"Blood" means whole blood collected from a single donor and processedeither for transfusion or further manufacturing.

"Blood component" means that part of blood separated by physical ormechanical means.

"Common control" means the power to direct or cause the direction of themanagement and policies of a person or an organization, whether by ownershipof stock, voting rights, by contract, or otherwise.

"Drug sample" means a unit of a prescription drug that is not intended tobe sold and is intended to promote the sale of the drug.

"Emergency medical reasons" includes transfers of prescription drugs by aretail pharmacy to another retail pharmacy to alleviate a temporary shortagearising from delays in or interruptions of regular distribution schedules.

(1992, c. 737.)

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