General News Hospital Medicines

A group of hospitals launch a drug company to reduce high prices for medicines


On Thursday, 6th September, several major hospital groups launched their own generic drug company in order to reduce the high prices for medicines and chronic shortages.

Civica Rx would be the new company formed by the group of hospitals and it is planning to start with 14 widely used hospital drugs which are short in supply which include a mix of generic pills and patches.

The company also plans to have injectable drugs for treating infections, heart conditions, and pain, as per Dan Liljenquist, the Chairman of the company.

Mr. Liljenquist added by stating “Civica is on a mission to make sure these drugs remain in the public domain, that they’re available and affordable to everyone.”

For a decade there has been drug shortages and have widespread across the country, due to manufacturers consolidating for inexpensive drugs. Manufacturers have stopped production of medicines which generate a low profit.

Manufacturers problems hit hard to hospitals and often scramble to find scarce medicines. Hospitals are hit hard with huge price markups and usually come up with medicines which are not as safe or effective for patients.

Civica plans to reduce the price of its medicines by 20% and provide a reliable supply for 500 hospitals. The company plans to sell the drugs to non-member hospitals which would be sold at a slightly higher price.

Civica is based out of Salt lake city and plans to make some of the drugs itself and the rest would be made by the companies it hires. The company is aiming to get the first set of medicines by the mid of 2019.

Civica was founded by seven hospital groups and three health foundations, among them, is Intermountain Healthcare which is a system of 23 hospitals which is based out of Salt Lake City. The American Hospital Association and Veterans Affairs would be participating where Liljenquist is chief strategy officer.

Martin VanTrieste, Amgen’s retired head of manufacturing quality would be chief executive of the not-for-profit company.

About the author


Kayla Matthews

Kayla Matthews is a tech journalist and MedTech writer whose work has been featured on Medical Economics, HIT Consultant, Digital Trends and VentureBeat. In addition, she's also been a staff writer for MakeUseOf and a frequent contributor for The Next Web.

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