In this article we look at the five things that you need to know when considering virtual wholesaling.
What is Virtual Wholesaling?
Simply put, virtual wholesaling is selling or buying medicinal product without any physical contact with that product. Thus a company engaged in virtual wholesaling are not holding medicinal products and do not need a storage site or warehousing facilities. Warehousing and storage requirements are either contracted to storage providers or managed by the supplier or the customer.
How does it work?
In order to act as a virtual wholesaler in Ireland the company must have a Wholesale Distribution Authorisation granted by the Health Products Regulatory Authority (HPRA). Regardless of whether the wholesaler is virtual or not, the same requirements and responsibilities apply. However, a virtual wholesaler, is exempt from certain requirements as a virtual wholesaler is not holding the medicinal product(s).
What are the benefits?
Over the last number of years there has been a movement of companies engaging in virtual wholesaling for the primary reason of financial gain and attractive profit margins. Medicinal products are considered as high value commodities where gross profits can be converted into operating profits.
What type of organisations are moving towards virtual wholesaling?
Many new companies have been established in the last few years with the primary purpose of acting as virtual wholesalers. These companies may be affiliates of larger pharmaceutical companies who are looking to diversify and develop market opportunities. Alternatively, a new company may be seeking alternative investment opportunities in wholesaling of medicinal products.
Where does Acorn Regulatory fit in?
The services Acorn Regulatory provide spans the entire spectrum from a supporting and advisory role to preparing and submitting the WDA application, designing a bespoke Quality Management System to acting as Responsible Person.
If you would like to talk to one of our regulatory specialists about virtual wholesaling, then get in touch with us. You can call us on 00353 52 61 76706 or simply complete your details below and we will get back to you.