Resolution approving Amendment No. 1 to the agreement between the City and County of San Francisco, acting by and through, the Department of Public Health (DPH), and Priority Healthcare Distribution, Inc. d/b/a CuraScript Specialty Distribution, for the procurement of specialty drugs, to extend the term by four years from November 30, 2026, for a total term of December 1, 2023, through November 30, 2030, and to increase the amount by $89,480,168 for a total not to exceed amount of $98,480,168; and to authorize DPH to enter into amendments or modifications to the agreement that do not materially increase the obligations or liabilities to the City and are necessary to effectuate the purposes of the agreement or this Resolution.

The City and County of San Francisco, through the Department of Public Health (DPH), is approving Amendment No. 1 to its agreement with Priority Healthcare Distribution, Inc. d/b/a CuraScript Specialty Distribution for the procurement of specialty drugs. This amendment extends the contract term by four years, from November 30, 2026, to November 30, 2030, and increases the total contract amount by $89,480,168 for a new not-to-exceed total of $98,480,168. The original agreement, effective December 1, 2023, was for $9,000,000 and was approved without competitive bidding due to the proprietary nature and single source availability of these specialty drugs, which include medications like NEXPLANON, SUBLOCADE, and TYMLOS.

This amendment ensures continued access to critical specialty medications for DPH patients, but represents a significant increase in public spending for these drugs over an extended period.

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