36-11A-2. Distribution defined. As used in this chapter, the term, distribution, means the sale, purchase, trade, delivery, handling, storage, or receipt of a product. The term does not include:

(1) Intracompany sales between any division, subsidiary, parent or otherwise affiliated or related company under the common ownership and control of a corporate entity;

(2) The purchase or other 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 other hospitals or health care entities that are members of such organizations;

(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 § 501(c)(3) of the Internal Revenue Code of 1954, as amended through December 18, 2015, to a nonprofit affiliate of the organization to the extent otherwise permitted by law;

(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;

(5) The sale, purchase or trade of a drug, or an offer to sell, purchase or trade a drug, for emergency medical reasons;

(6) The sale, purchase or trade of a drug, an offer to sell, purchase or trade a drug, or the dispensing of a drug pursuant to a prescription;

(7) The transfer of drugs by a pharmacy to another pharmacy to alleviate a temporary shortage;

(8) The distribution of drug samples by manufacturers' representatives or distributors' representatives;

(9) The sale, purchase, or trade of blood and blood components intended for transfusion;

(10) The sale, purchase, or trade of a drug to an individual under any form of insurance or an employee medical benefit program pursuant to a prescription; or

(11) The logistics and warehouse services provided by a third-party logistics provider.Source: SL 1991, ch 307, § 2; SL 2017, ch 174, § 7.