California Passes Landmark Bill Restricting the Pharmaceutical Supply Chain, Effective Immediately
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California Passes Landmark Bill Restricting the Pharmaceutical Supply Chain, Effective Immediately

Gov. Jerry Brown has signed California Assembly Bill (AB) 602 into law, which will make it “unprofessional conduct for a licensee to acquire a nonprescription diabetes test device from…[any entity that is] not the nonprescription diabetes test device’s manufacturer or manufacturer’s authorized distributor.” Unprofessional conduct allows for disciplinary action by the California State Board of Pharmacy.

The bill was signed on July 31, 2017, and is effective immediately.
This is the first time a state law has been passed that will effectively control from whom a pharmacy can purchase supplies, whether or not they are fully licensed and authorized per Federal and State law to purchase, receive, store, ship and sell the product.

In the past year, payors have followed similar policies. In August 2016, OptumRX created a policy for their network pharmacies restricted an independent pharmacy’s sourcing activities by way of VAWD Accreditation. Humana and CVS Caremark also followed suit.

In a statement, Assembly Member Rob Bonta (D-Alameda) claims to have authored the bill. Per, Rob Bonta brought in $176,672 from 356 Lawyer & Lobbyist organizations and $119,950 from 73 Pharmaceuticals & Health Product organizations.

Further, Rob Bonta specifically thanked the California Life Sciences Association (CSLA) for “leading the effort in support of AB 602.” The CSLA is an “advocacy and business leadership organization” whose members include the largest pharmaceutical and medical device manufacturers in the world.

Is this a true effort to stop fraudulent claims? Or is it a chance for the big players in the industry to gain more control? We would like to hear from you, please comment below!

Read the entire bill here.

About Pharma Solutions

Pharma Solutions is a leading pharmaceutical compliance services firm that uses experience, relationships and knowledge to develop custom solutions for their clients. The company provides numerous services including VAWD Accreditation, state Board licensing and federal registration. Five Rivers helps third-party logistic firms, distributors and manufacturers in the pharmaceutical industry focus on their supply chain while reducing costs, enhancing efficiency and improving quality. Five Rivers is committed to helping their clients thrive and to providing peace of mind.


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