In a drop shipment, who holds the title of the prescription drug being shipped?

In a drop shipment scenario, the wholesaler holds the title of the prescription drug being shipped. This process involves the manufacturer shipping the drug directly to the pharmacy or the patient but through the wholesaler. During this transaction, the wholesaler is responsible for the title of the drugs, meaning that they are considered the seller until the goods are delivered to the pharmacy or the final recipient.

This arrangement allows the pharmacy to receive the drugs without having to manage the inventory directly from the manufacturer, streamlining the supply chain. The wholesaler retains ownership until the drugs are delivered to the pharmacy, at which point the pharmacy takes possession and the responsibility for dispensing to the patient.

In contrast, the manufacturer produces the drug but does not own it at the time of shipping in this scenario. The pharmacy does not hold the title until they take possession of the goods, and the patient only holds the title after purchasing the medication from the pharmacy. Therefore, the wholesaler's role as the titleholder in this transaction is critical to understanding drop shipments.