Diplomat Pharmacy Inc (NYSE:DPLO) a Michigan corporation, certain Company subsidiaries, and AmerisourceBergen Drug Corporation, a Delaware corporation (“Amerisource”) entered into a Third Amendment (the “Third Amendment”), effective October 1, 2016, to the Prime Vendor Agreement dated January 1, 2012, as amended (the “Original Agreement,” and collectively as amended, the “Agreement”). The Agreement sets forth the terms and conditions on which the Company purchases specialty drugs from Amerisource.
The Third Amendment, among other provisions, (i) extends the term of the Agreement from September 30, 2017 to September 30, 2018, (ii) revises the pricing on certain products to be purchased pursuant to the Agreement, (iii) revises certain rebate structures and monthly volume tiered rebates, and (iv) adds Company subsidiary Valley Campus Pharmacy, Inc. (d/b/a TNH Specialty Pharmacy) as a party to the Agreement.
The Third Amendment further contemplates that the Company will make annual net purchases from Amerisource of at least $2.0 billion per contract year.
Except as specifically amended by the Third Amendment, the Original Agreement remains in full force and effect.