Document:

Exhibit 10.47

 

FIRST AMENDMENT

TO

WHOLESALE PRODUCT PURCHASE AGREEMENT

 

THIS FIRST AMENDMENT TO WHOLESALE PRODUCT PURCHASE AGREEMENT (this “Amendment”) is made this 27th day of November, 2018 (“Amendment Effective Date”), by and between Priority Healthcare Distribution, Inc., doing business as CuraScript SD Specialty Distribution, a Florida corporation having offices at 255 Technology Park, Lake Mary, Florida 32746, (“Distributor”), and United Therapeutics Corporation (“UT”), a Delaware corporation having offices at 1040 Spring Street, Silver Spring, Maryland. Distributor and UT are each referred to in this Agreement as a “Party,” collectively, the “Parties.”

 

WHEREAS, the Parties entered into that certain Wholesale Product Purchase Agreement (the “Agreement”), dated as of January 1, 2018 (the “Effective Date”); and

 

WHEREAS, as a matter of course of performance the Parties performed certain obligations as of the Effective Date, due to an administrative error such performance was not detailed in the Agreement;

 

WHEREAS, the Parties desire to amend and revise the Agreement as provided herein, ; and

 

NOW THEREFORE, in consideration of the mutual agreements and covenants contained herein, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties hereto, intending to be legally bound, hereby agree as follows:

 

1.                                      As of the Effective Date Distributor provided, and continues to provide, certain distribution services for UT’s PAP and CAP programs. Section 1.15 is hereby added to the Agreement describing such services as follows:

 

PAP AND CAP.  Distributor will support UT’s PAP and CAP programs, as defined and described in EXHIBIT B. UT may terminate the PAP and CAP programs in its sole and absolute discretion upon thirty (30) days advance written notice to Distributor. Following the termination date, Distributor shall no longer distribute UT Product on consignment to Accredo (as set forth in EXHIBIT B) free of charge for use in the PAP and CAP programs.

 

2.                                      As of the Effective Date Distributor provided, and continues to provide, certain distribution services for UT’s PAP and CAP programs. The service fees for these services shall be calculated based on Exhibit B to the Agreement, which is hereby amended to include Section IV as follows:

 

IV. Maintenance of PAP and CAP Inventory

 

UT maintains a Continued Access Program (“CAP”) and a Patient Assistance Program (“PAP”) for purposes of providing UT Product to eligible patients free of charge.  These programs are administered in part with the assistance of Accredo Health Group, Inc. (“Accredo”), under a separate agreement between UT and Accredo.  In order to enable Accredo to perform services related to the PAP and CAP programs, UT shall supply, free of charge, mutually-agreed quantities of UT Product for the PAP and CAP programs, which Distributor shall distribute to Accredo upon request by Accredo for the sole purpose of administering the CAP and PAP programs.

 

All UT Product delivered to Distributor for use in the CAP and PAP programs shall be consigned inventory, maintained and tracked at all times by Distributor in a segregated manner from all commercially purchased or RHAP product. Distributor is responsible for risk of loss to all UT Product on hold for the CAP and PAP programs if such Product is lost, damaged or destroyed solely while in Distributor’s possession or control and such loss, damage or destruction arises out of the

 

 

negligence or willful misconduct of Distributor. For clarity, the Parties acknowledge that UT Product is not in Distributor’s possession or control while being shipped from Distributor to Accredo.

 

As the Distributor’s sole compensation for maintaining CAP and PAP inventory, UT agrees that the 30 basis point fee outlined in Section III shall be payable for CAP and PAP shipments to Distributor, with the 30 basis point fee being calculated based on an assumed WAC price equivalent to the WAC price of UT Product then in effect for commercial supply of UT Product to Distributor. The Parties agree and acknowledge that the Services outlined in Section I (Distribution Services) apply to the maintenance of PAP and CAP inventory, and as such the 30 basis point fee reflects fair market value for these services.

 

3.                                      Except as amended and supplemented hereby, all of the terms and conditions of the Agreement shall remain and continue in full force and effect and apply hereto.

 

IN WITNESS WHEREOF, each of the undersigned, duly authorized, has executed this Amendment, effective as of the Effective Date.

 

	
PRIORITY HEALTHCARE   DISTRIBUTION, INC. 
    	
UNITED THERAPEUTICS CORPORATION    
    
	
 
    	
 
    
	
By:
    	
/s/ Earl English 
    	
 
    	
By:
    	
/s/ Kevin T. Gray
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Print Name:
    	
Earl English 
    	
 
    	
Print Name:
    	
Kevin Gray 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Title:
    	
President 
    	
 
    	
Title:
    	
Senior Vice President,   Strategic Operations 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Date:
    	
11-28-18
    	
 
    	
Date:
    	
11-29-2018Exhibit 10.48

 

SECOND AMENDMENT

TO

WHOLESALE PRODUCT PURCHASE AGREEMENT

 

THIS SECOND AMENDMENT TO WHOLESALE PRODUCT PURCHASE AGREEMENT (this “Amendment”) is made this 1st day of February, 2019, by and between Priority Healthcare Distribution, Inc., doing business as CuraScript SD Specialty Distribution, a Florida corporation having offices at 255 Technology Park, Lake Mary, Florida 32746, (“Distributor”), and United Therapeutics Corporation (“UT”), a Delaware corporation having offices at 1040 Spring Street, Silver Spring, Maryland. Distributor and UT are each referred to in this Agreement as a “Party,” collectively, the “Parties.”

 

WHEREAS, the Parties entered into that certain Wholesale Product Purchase Agreement (as amended, the “Agreement”), dated as of January 1, 2018 (the “Effective Date”); and

 

WHEREAS, Distributor distributes Products to its customers including Accredo Health Group Inc. (“Accredo”), a specialty pharmacy; and

 

WHEREAS, UT issues certain chargeback payments to Accredo for Products, and wishes to engage Distributor to administer those payments.

 

WHEREAS, the Parties desire to amend the Agreement as provided herein, with effect from the Effective Date

 

NOW THEREFORE, in consideration of the mutual agreements and covenants contained herein, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties hereto, intending to be legally bound, hereby agree as follows:

 

1.                                      Wherever the term “Price” is used throughout the Agreement, the defined term “Product Price” is hereby substituted therefor.

 

2.                                      Section 2.4, Chargebacks, is hereby deleted and replaced with the following Section 2.4:

 

2.4                               (A) CHARGEBACKS. Subject to UT’s reimbursement of the Chargebacks (as described below) Distributor shall provide wholesale distribution to certain entities eligible for discounted government pricing (e.g., FSS, VA, PHS (340B)) (“Discounted Entity”) as described herein. The discounted government pricing is less than the price at which Distributor purchases UT Product (i.e., less than the Product Price set forth in Exhibit A). Distributor shall create an account for each Discounted Entity purchasing UT Product from Distributor. As part of this process, Distributor shall use Commercially Reasonable Efforts to identify whether the proposed Discounted Entity is eligible for discounted government pricing through direct documentation from the proposed Discounted Entity or through review of data on the HRSA eligibility website or other database resource. UT agrees that all HRSA active entity codes are eligible for discounted government pricing. As an order for UT Product is received from the Discounted Entity, Distributor shall sell UT Product to the Discounted Entity at the discounted government price. At least five (5) business days prior to the effective date of any original contract, or update to any existing contract, UT will provide Distributor, via email, all original contract pricing and/or membership information, and any contract notifications or updates to ContractAdmin@CuraScript.com. The difference between the discounted government price and the Product Price as of the Discounted Entity’s invoice date for the UT Product is referred to as the “Chargeback.” The Chargeback shall be paid by UT to Distributor by check. When submitting a Chargeback request to UT, Distributor shall send Distributor’s chargeback template via systematic email to UTtrade@unither.com and shall include the information in an Excel format as set forth

 

 

below. Chargeback request(s) shall be submitted to UT by the tenth (10th) day of each month for all activity in the previous calendar month. UT shall process Chargeback credits due to Distributor within thirty (30) days of receipt of the Chargeback submission. UT shall send Distributor any information or updates regarding Chargeback requests to ChargebackAdmin@CuraScript.com. UT will provide, at the time of payment, a reconciliation report for disputed Chargeback items.

 

Manual Chargeback Report

 

 

Distributor may resubmit disputed Chargebacks for reconsideration within (60) days from the date the reconciliation report is received. In the event that new information surfaces that causes corrections or adjustments to prior sales, Distributor may reopen and resubmit chargeback claims within eighteen (18) months of the original sale date or as otherwise may be required in a government contract. Distributor shall not set off Chargebacks owed by UT against any amounts owed by Distributor to UT. Upon termination of this Agreement, if there are any unapplied credits for a Chargeback, UT shall issue a check in the amount thereof to Distributor. Chargebacks paid hereunder constitute reimbursement to Distributor for debits incurred in administering UT discounts to Discounted Entities, and are not, and should not be construed as, remuneration intended to induce Distributor to purchase, order, lease, or recommend any UT product.

 

(b) CHARGEBACK PAYMENTS FOR ACCREDO. Accredo also sells UT Product purchased from Distributor to Discounted Entities, and wishes to submit Chargebacks to UT for payment through Distributor. Distributor shall invoice UT for certain Chargeback payments due to Accredo (“Accredo Payments”) per the process detailed below. All invoices and reports received by Distributor will not include any PHI.

 

(i)                                     Accredo shall provide a detailed report of Accredo Payments due from UT to Distributor on a monthly basis.

 

(ii)                                  Distributor shall invoice UT for Accredo Payments on a monthly basis, within thirty (30) days of the end of each calendar month. Distributor will include the detailed report along with the invoice.

 

(iii)                               UT shall process Chargeback payments to Distributor within thirty (30) days of receipt of the Chargeback submission.

 

(iv)                              Upon payment from UT, Distributor shall issue payment to Accredo.

 

 

(v)                                 UT agrees to resubmit disputed Chargebacks directly to Accredo for reconsideration. Distributor shall not have responsibility for disputed payments, and UT shall not be required to pay Distributor for Chargebacks it is disputing with Accredo. Reconciliation will occur as part of the following month’s payment.

 

3.                                      The language below is added to Exhibit B, section III:

 

	
Accredo Payments
    	
 
    	
$100/Invoice Issued by Distributor to UT
    	
 
    	
In consideration of Distributor invoicing,   processing, and administering the Accredo Payments.
    

 

4.                                      Except as amended and supplemented hereby, all of the terms and conditions of the Agreement shall remain and continue in full force and effect and apply hereto.

 

IN WITNESS WHEREOF, each of the undersigned, duly authorized, has executed this Amendment, effective as of the Effective Date.

 

	
PRIORITY HEALTHCARE   DISTRIBUTION, INC.
    	
 
    	
UNITED THERAPEUTICS CORPORATION
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
By:
    	
/s/   William Shirey
    	
 
    	
By:
    	
/s/ Kevin Gray
    
	
 
    	
 
    	
 
    
	
Print
    	
 
    	
Print
    
	
Name:
    	
William   Shirey
    	
 
    	
Name:
    	
Kevin Gray
    
	
 
    	
 
    	
 
    
	
Title:
    	
Vice   President
    	
 
    	
Title:
    	
Senior Vice President,   Strategic Operations
    
	
 
    	
 
    	
 
    
	
Date:
    	
02/01/19
    	
 
    	
Date:
    	
2/14/2019

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