I have read a few articles this week announcing Civica Rx, most recently from
The Advisory Board about a consortium of large institutions getting into the generic drug business. According to this article, over $160 million has been raised by requiring hospitals who wish to purchase drugs from this new venture to pay a membership fee.
On the surface, this seems a logical way tor health systems to combat drug shortages.Initially, it appears that this company will operate by arranging manufacture by current generic drug companies, but there is intent for Civica to build out its own manufacturing facilities. According to this article, Civica intends to offer 20 different generic drugs some time in 2019.
The more I think about this, however, the more I find myself wondering how this venture will wind up being different than the current for-profit generic drug manufacturing business.
- How will this organization determine what to make?
- How will this organization govern pricing?
- Will this organization compete head-to-head with the for-profit manufacturing community? If so, what effect will that have on Civica?
I don't know the answers to these questions, but it will remain interesting to see how this goes.
What do you think?
Dennis A. Tribble, Pharm.D, FASHP
Ormond Beach, FL
DATdoc@aoll.com
The opinions expressed herein are my own and not necessarily those of my employer or of ASHP.