Major Hospitals Launch Generic Drug Company

Responding to ongoing drug shortages and high prices, several major hospital groups in the U.S. have announced a partnership to manufacture generic drugs.

The new company, Civica Rx, will produce 14 drugs that are widely used in hospitals, but often are in short supply. The specific drugs, though, have not yet been named. When shortages of drugs occur, hospitals may be forced to purchase drugs at price markups or prescribe alternative treatments, potentially increasing the risk to patients.

Civica Rx hopes to remedy these problems by creating a reliable supply of generic drugs for its 500 hospitals and reducing drug prices by 20 percent. “The mission of Civica is to make sure these drugs remain in the public domain, that they’re available and affordable to everyone,” said Civica Rx board chairman Dan Liljenquist.

Civica Rx, which was formed by three health foundations and seven hospital groups, plans to sell its generic drugs to nonmember hospitals, as well. The company hopes to get its first products to the market by 2019.

Source: The Associated Press, September 6, 2018.