Tired Of Shortages And High Costs, Hospital Group Launches Company To Make Its Own Drugs
Besides creating a reliable supply for its 500 hospitals, Civica aims to reduce drug prices by about 20 percent. "There are a lot of very principled generic drug makers out there ... they have nothing to worry about," said Dr. Marc Harrison, president and CEO of Intermountain Healthcare. "The folks who are gouging people and creating shortages, they know who they are. And they're the ones who should be very concerned."
The Associated Press:
Hospital Groups Launch Own Company To Make Generic Drugs
Several major hospital groups Thursday launched their own generic drug company to tackle chronic shortages and high prices. The new company, Civica Rx, plans to start with 14 widely used hospital drugs long in short supply. The company isn't disclosing the drugs' names for competitive reasons, but they include a mix of generic pills, patches and injectable drugs for treating infections, pain and heart conditions, board chairman Dan Liljenquist said. (Johnson, 9/6)
The Washington Post:
Hospitals Are Fed Up With Drug Companies, So They’re Starting Their Own
Backed by seven large health systems and three philanthropic groups, the new venture will be led by an industry insider who refuses to draw a salary. The company will focus initially on establishing price transparency and stable supplies for 14 generic drugs used in hospitals, without pressure from shareholders to issue dividends or push a stock price higher. “We’re trying to do the right thing — create a first-of-its-kind societal asset with one mission: to make sure essential generic medicines are affordable and available to everyone,” said Dan Liljenquist, chair of Civica Rx and chief strategy officer at Intermountain Healthcare in Utah. (Johnson, 9/6)
NPR:
Hospitals Prepare To Launch Their Own Drug Company To Fight High Prices and Shortages
"Every day at Intermountain we manage more than 100 drug shortages, and most of them are generics," said Dr. Marc Harrison, president and CEO of Intermountain Healthcare, a system of 22 hospitals based in Salt Lake City. "The impact on patient care, in terms of trying to find alternatives and scurrying around and trying to find necessary drugs, is incredibly time-consuming and disconcerting." (Kodjak, 9/6)
Houston Chronicle:
Hospital Systems Taking On Drug Market Manipulators, Starting Company With Lower Prescription Prices
"We are creating a public asset with a mission to ensure that essential generic medications are accessible and affordable," Martin VanTrieste, CEO of the initiative, named Civica Rx, said in a statement. "This will improve the situation for patients by bringing much needed competition to the generic drug market." (Ackerman, 9/5)
In other pharmaceutical news —
Stat:
Amid Anger Over Drug Prices, Former Pharma CEO Bob Hugin Runs For The Senate
Bob Hugin, the former CEO of Celgene, spent Labor Day walking through the crowd with a phalanx of staff and volunteers, each with a sign and a T-shirt bearing his name. They chanted, cheered, and sloganeered as Hugin’s would-be constituents looked on, varyingly bemused or befuddled at the merry little militia demonstrating in their town. Hugin shook hands, posed for photos, and remembered to say “good to see you” but never “nice to meet you.” This is his life now. In February, the 64-year-old left behind the air-conditioned conference halls, sycophantic analysts, and princely pay packages that come with being a Fortune 500 CEO. He branded himself “a different kind of Republican,” set aside $20 million of his own money, and became the GOP’s only hope to unseat the incumbent Sen. Bob Menendez. (Garde, 9/6)
Stat:
Most Americans Don't Believe Trump's Tough Talk Will Lower Drug Prices
President Trump may like to use the bully pulpit to call on drug makers to lower their prices, but most Americans don’t believe his tough talk will make much of a difference. To be specific, 55 percent of Americans say his strategy of publicly calling on drug companies to lower their costs will not be too effective or at all effective, according to a poll by the Kaiser Family Foundation. By comparison, 42 percent say this approach will be very or somewhat effective. (Silverman, 9/5)
Modern Healthcare:
Hospitals Sue For Third Time Against 340B Cuts
Hospitals led by the American Hospital Association are mounting another legal fight against the CMS outpatient pay rule that starting Jan. 1 will cut Medicare Part B drug reimbursements for hospitals part of the 340B program. The agency recently proposed extending those cuts to outpatient facilities in order to curb any potential "behavioral changes" by providers. (Luthi, 9/5)
