In 2019, Minnesota announced an increase in registration fees for wholesalers and manufacturers from $235 per year to $5,260 (read more information here). The 2,200% increase for Minnesota fees has created an unprecedented barrier to entry for small wholesalers and start-up manufacturers. Of our clients, 25% have decided to forego licensure in the state– typically smaller wholesalers and virtual manufacturers who have not yet started a business within the state. Minnesota needs to consider a tiered approach, like Texas, where fees are dependent on company sales revenue. Additionally, because the fee increase is a way to raise funds for a response to the opioid epidemic, Minnesota additionally needs to consider only applying the increase in fees to those companies that sell and/or ship opioid (Schedule II) prescription drug products. For more information on State Compliance services, please click here.
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