Civica Rx, a provider-led nonprofit generic drug company that aims to improve access to generic medication and lower drug costs, last week opened its headquarters in Lehi, Utah. The company plans to supply 14 generic drugs and have its first on the market by the end of the year.
Civia said it chose the Utah city for its central location among the state's universities. One of the leading organizations behind Civica Rx, Intermountain Healthcare, is already based in Utah, and Civica has noted the presence of existing generic drug infrastructure in the state, citing Teva as an example.
About two dozen healthcare companies, including Intermountain Healthcare, Mayo Clinic, Providence St. Joseph Health and Trinity Health are represented on Civica's governing board or are founding members in the nonprofit. Civica expects to partner with more than 900 U.S. hospitals.
Thursday's headquarters opening was an opportunity for Civica to reinforce its messaging on why the company was created: to stabilize generic drug supply.
"Drug shortages strain hospital staff, lead to delayed surgeries and sub-optimal treatments for patients, and can lead to unpredictable price increases that result in budgetary instability in hospitals," said Civica Rx CEO Martin VanTrieste.
The office will open with about 40 staff members, but Civica expects that number to increase four- or five-fold withing five years.
.@Intermountain and our other partner systems have the opportunity through @CivicaRx to do the right thing for patients - providing affordable and available generic medications. @MarcHarrisonMD #StrongerTogether pic.twitter.com/6mkyCr6C71— Intermountain (@Intermountain) April 18, 2019
The opening follows criticism of drugmakers and pharmacy benefit managers for price increases and shortages for generics. There are currently hundreds of prescription drug shortages.
Research from the American Hospital Association, Federation of American Hospitals and American Society of Health-System Pharmacists found that more than 90% of the hospitals had to find alternative therapies in response to cost increases and drug shortages.