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Reverse Distribution

The pharmaceutical returns industry is a relatively young commerce which was born out of the Federal Government's Prescription Drug Marketing Act (PDMA) in the late 1980's. The Act was introduced to combat increasing corruption in a fast growing industry with fast rising drug prices.

30 years ago, relatively few  drug products had expiration dates.  There were no real returns either, instead the pharmaceutical sales representative would simply trade out slow moving, damaged or worn product from the trunk of his vehicle. There was no paperwork, no returns fee and no hassle.

As time went on more products started to carry expiration dates, but the dates were just simply ignored and the drugs were dispensed as they had been before. Manufacturer samples also became an unscrupulous way for the pharmacist to make additional income with the trunk of the Sales Representatives vehicle the source.


PDMA  brought in rules to end the corruption. Distributors could no longer possess or handle open trade packages, Pharmacies had to certify that drugs they were returning had been stored under proper and safe conditions and the lucrative drug samples were no longer available. This last change effectively brought about the end of the sales representative visits and the end of the basic return service of the day. Now it was up to the pharmacy and distributor to handle, store and process the return products, adding new and not insignificant handling and processing costs.

The fast growing industry created an increasing volume of returns which,  along with the complexity of manufacturer pricing, cause delays in issuing returns authorizations and processing credits. A lot of returns were also denied credit due to items being returned in non-compliant packaging such as prescription bottles, opened containers, repacks and unit dose cards.


Short dated product returns, essentially product which has 6 months or less remaining before expiration had started to become an issue at the end of the 1990's. State Boards had began passing regulation requiring that prescribed drugs have sufficient dating so not to expire before the last dose. Third party drug plans started to introduce increased prescription supply quantities of up to 90 days and the consumer patient had also become wary of consuming product so close to expiration. Hospital supply contracts pushed the short date time scale further with bid requirements specifying 18 months as a supply contract condition.

Reverse distributors now play a important and significant role in the Pharmaceutical and Healthcare industry. With an ever increasing number of pharmaceutical manufacturers, products, pricing, return policies along with Federal and State pharmaceutical diversion controls and environmental waste regulations the reverse distributor has evolved into an efficient returns service provider.



Many industry members have taken on their own returns processing departments but soon find that it involves a significant investment in time, space, staff and technology. This along with the amount of monetary volume and the sheer scale of work involved reconciling what credit comes back quickly becomes a project which always costs more than imagined.

This is where Rx REVERSE DISTRIBUTORS, INC. has evolved. We have the technology, knowledge and expertise to handle your pharmaceutical returns with no aggravation. We return product to ALL manufacturers providing a one stop destination for your expired pharmaceuticals. Our investment in technology ensures you of fast, efficient and accurate processing of your product. We provide you with detailed inventory reports showing your total inventory, schedule II, III-V and non-controlled along with a breakdown and a analysis of your returnable and non-returnable product.


Our new RxCASH program gives you the complete solution for your pharmaceutical returns. Once your product has been returned to the manufacturers our service does not stop there. We receive and fully reconcile your return credits for you, providing you with a detailed monthly statement which itemizes your manufacturer credits. Included with your statement will be your RxCASH  paying you the credit balance on your account. Your returns can be that easy!

The pharmaceutical returns industry has evolved and will continue to evolve. Rx REVERSE DISTRIBUTORS, INC. will continue to evolve with it. We are committed to working with you, your wholesaler and the manufacturers to identify and claim every credit due to you.

WE DO THE WORK, YOU GET THE CREDIT!