The following activities do not constitute wholesale distribution of prescription drugs for which a wholesale drug distributor license is required by 12 AAC 52.610 - 12 AAC 52.690:

1. (1) intracompany sales, defined as any transaction or transfer between any division, subsidiary, parent, and an affiliated or related company under the common ownership and control of a corporate entity;
2. (2) the purchase or acquisition, by a hospital or other health care entity that is a member of a group purchasing organization, of a drug, for its own use, from the group purchasing organization or from another hospital or health care entity that is a member of the group purchasing organization;
3. (3) the sale, purchase, or trade of a drug or an offer to sell, purchase, or trade a drug by a charitable organization described in 26 U.S.C. 501(c)(3) (Internal Revenue Code of 1954), as amended as of February 6, 1997, to a nonprofit affiliate of the organization to the extent otherwise permitted by the law;
4. (4) the sale, purchase, or trade of a drug or an offer to sell, purchase, or trade a drug among hospitals or other health care entities that are under common control; for purposes of this paragraph, "common control" means the power to direct or cause the direction of the management and policies of a person or an organization, whether by ownership of stock, by voting rights, by contract, or otherwise;

5. (5) any of the following transfers of a drug, if the gross dollar value of the transfer does not exceed five percent of the total prescription drug sales revenue of either the transferor or transferee during any 12-consecutive-month period:

   1. (A) the sale of a drug by a retail pharmacy to another retail pharmacy or to a practitioner, or the offer by a retail pharmacy to sell a drug to another retail pharmacy or to a practitioner;
   2. (B) the purchase of a drug by a retail pharmacy or by a practitioner from another retail pharmacy, or the offer by a retail pharmacy or by a practitioner to purchase a drug from another retail pharmacy;
   3. (C) the trade of a drug by a retail pharmacy with another retail pharmacy, or the offer by a retail pharmacy to trade a drug with another retail pharmacy;
6. (6) the sale, purchase, or trade of a drug, an offer to sell, purchase, or trade a drug, or the dispensing of a drug, under a prescription;
7. (7) the distribution of drug samples by manufacturers' representatives or distributors' representatives; or
8. (8) the sale, purchase, or trade of blood and blood components intended for transfusion.

(Eff. 1/16/98, Register 145; am 11/16/2012, Register 204)

Authority: AS 08.80.005, AS 08.80.030, AS 08.80.157, AS 08.80.159