<<Prev Rule

Texas Administrative Code

Next Rule>>
TITLE 25HEALTH SERVICES
PART 1DEPARTMENT OF STATE HEALTH SERVICES
CHAPTER 229FOOD AND DRUG
SUBCHAPTER WLICENSING OF WHOLESALE DISTRIBUTORS OF PRESCRIPTION DRUGS--INCLUDING GOOD MANUFACTURING PRACTICES
RULE §229.429Minimum Standards for Licensure

(a) General requirements.

  (1) All persons engaged in the wholesale distribution of prescription drugs must comply with the applicable minimum standards in this section, in addition to the statutory requirements contained in the Texas Food, Drug, and Cosmetic Act, Health and Safety Code Chapter 431 (Act) and the requirements in §229.420 of this subchapter (relating to Applicable Laws and Regulations).

  (2) For the purpose of this section, the policies described in the United States Food and Drug Administration (FDA) Compliance Policy Guides as they apply to prescription drugs are the policies of the department.

  (3) Prescription drug wholesalers must not purchase or receive drugs in this state other than from drug distributors licensed by the department.

(b) Federal establishment registration and drug listing. All persons who operate as prescription drug manufacturers in Texas must meet the requirements in 21 Code of Federal Regulations (CFR) Part 207, titled Requirements for Foreign and Domestic Establishment Registration and Listing for Human Drugs, Including Drugs That are Regulated Under a Biologics License Application, and Animal Drugs, and the National Drug Code. New prescription drugs offered for sale by wholesale distributors must meet, if applicable, the requirements of 21 CFR Part 314, Applications for FDA Approval to Market a New Drug.

(c) Good manufacturing practices. Manufacturers of prescription drug products must comply with the applicable requirements in:

  (1) 21 CFR Part 210, Current Good Manufacturing Practice in Manufacturing, Processing, Packing, or Holding of Drugs; General;

  (2) 21 CFR Part 211, Current Good Manufacturing Practice for Finished Pharmaceuticals;

  (3) 21 CFR Part 225, Current Good Manufacturing Practice for Medicated Feeds;

  (4) 21 CFR Part 226, Current Good Manufacturing Practice for Type A Medicated Articles; and

  (5) the regulations in this subsection governing the methods used in, and the facilities or controls used for, the manufacture, processing, packing, or holding of a drug to ensure each drug meets the requirements of the Federal Food, Drug, and Cosmetic Act, 21 United States Code (USC) §301, et seq., as amended, (Federal Act) as to safety, and has the identity and strength and meets the quality and purity characteristics it purports or is represented to possess.

(d) Buildings and facilities.

  (1) All manufacturing, processing, packing, or holding of drugs by prescription drug manufacturers must take place in buildings and facilities described in subsection (c) of this section.

  (2) Manufacturing, processing, packing, or holding of prescription drugs must not be conducted in any personal residence.

  (3) Sale of prescription drugs must not be conducted in any flea market.

  (4) Any place of business used by a wholesale distributor of prescription drugs who is not a manufacturer to store, warehouse, hold, offer, transport, or display drugs must:

    (A) comply with §229.420(a)(14) of this subchapter;

    (B) be of suitable size and construction to facilitate cleaning, maintenance, and proper operations;

    (C) have storage areas designed to provide adequate lighting, ventilation, temperature, sanitation, humidity, and space;

    (D) be maintained in a clean and orderly condition;

    (E) be free from infestation by insects, rodents, birds, or vermin of any kind; and

    (F) have a quarantine area for storage of drugs that are outdated, damaged, deteriorated, misbranded, or adulterated.

(e) Storage of prescription drugs. All prescription drugs stored by wholesale distributors must be held at appropriate temperatures and under appropriate conditions in accordance with requirements, if any, in the labeling of such drugs.

(f) Minimum restrictions on transactions.

  (1) Returns.

    (A) A wholesale distributor must receive prescription drug returns or exchanges from a pharmacy or pharmacy warehouse in accordance with the terms and conditions of the agreement between the wholesale distributor and the pharmacy or pharmacy warehouse. An expired, damaged, recalled, or otherwise nonsalable prescription drug returned to the wholesale distributor may be distributed by the wholesale distributor only to either the original manufacturer or a third party returns processor. The returns or exchanges, salable or otherwise, received by the wholesale distributor as provided by this subsection, including any redistribution of returns or exchanges by the wholesale distributor, are not subject to the pedigree requirement under Texas Health and Safety Code §431.412, if the returns or exchanges are exempt from pedigree under:

      (i) §503, Prescription Drug Marketing Act of 1987 (21 USC §353(c)(3)(B));

      (ii) the regulations adopted by the Secretary of the U.S. Department of Health and Human Services to administer and enforce the Act in clause (i) of this subsection; or

      (iii) the interpretations of the Act in clause (i) of this subsection, set out in the compliance policy guide of the FDA.

    (B) Each wholesale distributor and pharmacy must administer the process of drug returns and exchanges to ensure the process is secure and does not permit the entry of adulterated or counterfeit drugs into the distribution channel.

    (C) Notwithstanding any provision of state or federal law to the contrary, a person not otherwise required to obtain a wholesale license under this subchapter and that is a pharmacy engaging in the sale or transfer of expired, damaged, returned, or recalled prescription drugs to the originating wholesale distributor or manufacturer and pursuant to federal statute, rules, and regulations, including the FDA applicable guidance implementing the Prescription Drug Marketing Act of 1987 (Pub. L. No. 100 - 293), is exempt from wholesale licensure requirements under this subchapter.

    (D) All other returns must comply with the requirements of 21 CFR §203.23(a)(1) - (5).

  (2) Distributions. A manufacturer or wholesale distributor may distribute prescription drugs only to a person licensed under this subchapter, or the appropriate state licensing authorities, if an out-of-state wholesaler or retailer, or to a person authorized by federal law to receive the drug. Before furnishing prescription drugs to a person not known to the manufacturer or wholesale distributor, the manufacturer or wholesale distributor must verify the person is legally authorized by the department or the appropriate state licensing authority to receive the prescription drugs or is authorized by federal law to receive the drugs. Wholesale distributors physically located and conducting operations in another state must verify, before purchasing or receiving product, the suppliers of drugs are licensed under this subchapter and physically located in Texas; and must notify the department of unlicensed wholesale distributors.

  (3) Pedigree.

    (A) A person, who is engaged in the wholesale distribution of a prescription drug, including a repackager but excluding the original manufacturer, must provide a pedigree for each prescription drug for human consumption that leaves or at any time left the normal distribution channel and is sold, traded, or transferred to any other person.

    (B) A retail pharmacy or pharmacy warehouse is required to comply with this section only if the pharmacy or warehouse engages in the wholesale distribution of a prescription drug.

    (C) A person who is engaged in the wholesale distribution of a prescription drug, including a repackager, but excluding the original manufacturer of the finished form of a prescription drug, and who is in possession of a pedigree for a prescription drug must verify before distributing the prescription drug that each transaction listed on the pedigree has occurred.

    (D) A pedigree must include all necessary identifying information concerning each sale in the product's chain of distribution from the manufacturer, through acquisition and sale by a wholesale distributor or repackager, until final sale to a pharmacy or other person dispensing or administering the drug. At a minimum, the chain of distribution information must include:

      (i) the name, address, telephone number, and, if available, the e-mail address of each person who owns the prescription drug and each wholesale distributor of the prescription drug;

      (ii) the name and address of each location from which the product was shipped, if different from the owner's name and address;

      (iii) the transaction dates; and

      (iv) certification that each recipient has authenticated the pedigree.

    (E) The pedigree must include, at a minimum, the:

      (i) name of the prescription drug;

      (ii) dosage form and strength of the prescription drug;

Cont'd...

Next Page

Link to Texas Secretary of State Home Page | link to Texas Register home page | link to Texas Administrative Code home page | link to Open Meetings home page