Hospitals launch non-profit generics company

Generics/General | Posted 05/10/2018 post-comment0 Post your comment

Several major hospital groups announced the official launch of their non-profit generics company, Civica Rx, on 6 September 2018. The company has been created in an effort to combat regular shortages and the increasing prices of drugs.

09 AA008582

The initiative was first announced back in January 2018 by Intermountain Healthcare [1] and now includes Catholic Health Initiatives, HCA Healthcare, Intermountain Healthcare, Mayo Clinic, Providence St Joseph Health, SSM Health, and Trinity Health. These seven organizations represent about 500 US hospitals. In addition, Civica Rx will also work in consultation with the US Department of Veterans Affairs.

Intermountain Healthcare has also said that since the initiative was announced ‘more than 120 health organizations representing about a third of the nation’s hospitals have contacted Civica Rx and expressed a commitment or interest in participating with the new company’.

Three national foundations have also committed US$30 million to help establish Civica Rx. The Laura and John Arnold Foundation, the Peterson Center on Healthcare and the Gary and Mary West Foundation each committed US$10 million.

Civica Rx will either directly manufacture generics or subcontract manufacturing to reputable contract manufacturing organizations. It has identified 14 hospital-administered generics as the initial focus of the company’s efforts and expects to have its first products on the market as early as 2019.

The company’s first aim is to stabilize the supply of essential generics administered in hospitals, many of which have fallen into chronic shortage situations, putting patients at risk. The initiative, according to the associations, ‘will also result in lower costs and more predictable supplies of essential generic medicines, helping ensure that patients and their needs come first in the generic drug marketplace’.

The company states that ‘research into the actual costs of manufacturing and distributing generic drugs suggests that, in many instances, prices for generic drugs used in hospitals can be reduced to a fraction of their current costs’.

Related articles
Mergers could be causing price increases for generics

Spending on medicines in the US increases again in 2015

1.  GaBI Online - Generics and Biosimilars Initiative. Hospitals to start own generics company []. Mol, Belgium: Pro Pharma Communications International; [cited 2018 Oct 5]. Available from:

Permission granted to reproduce for personal and non-commercial use only. All other reproduction, copy or reprinting of all or part of any ‘Content’ found on this website is strictly prohibited without the prior consent of the publisher. Contact the publisher to obtain permission before redistributing.

Copyright – Unless otherwise stated all contents of this website are © 2018 Pro Pharma Communications International. All Rights Reserved.

Source: Civica Rx, Intermountain Healthcare

comment icon Comments (0)
Post your comment
Related content
FDA reaches 100 generic approvals
53 MD002445
Generics/General Posted 12/11/2021
New five-year medicines agreements in Australia
Generics/General Posted 24/09/2021
Generics applications under review by EMA – July 2021
EMA logo 2 V13F14
Generics/General Posted 23/07/2021
Most viewed articles
About GaBI
Home/About GaBI Posted 05/08/2009
EU guidelines for biosimilars
EMA logo 1 V13C15
Home/Guidelines Posted 08/10/2010