Plan to cut drug prices signs manufacturer
The pharmaceutical company working with several Houston hospitals to help supply scarce drugs has partnered with a Danish company to manufacture generic antibiotics for severe infections.
Civica Rx, of Lehi, Utah, announced a contract with Xellia Pharmaceuticals, a Copenhagen drug company with manufacturing plants in the United States, to produce vancomycin and daptomycin, which are used in the intravenous treatment of antibiotic-resistant infections. The generic drugs are the first two announced by Civica as part of a unique initiative that it launched last year.
The drug company works directly with partner hospitals to identify needed medications that are often in short supply. The process is designed to help bring down costs as scarce drugs can drive prices to “artificially high” levels, Civica said.
The two antibiotics should be available to member hospitals by summer’s end, the company said. Civica hopes to deliver 14 drugs by the first of 2020.
“We thank Xellia for helping lead the way in efforts to reduce chronic generic drug shortages in the U.S., including treatments for serious infections caused by bacteria that are resistant to other antibiotics,” said Martin Van Trieste, CEO of Civica, in a statement.
About 900 hospitals have joined with Civica, the company said. In Houston, HCA Houston Healthcare’s 15 area hospitals, Memorial Hermann Health Service’s 13 area hospitals and Catholic Health Initiatives, which includes St. Luke’s health network, have signed on with Civica.
In addition, the Houston-based Laura and John Arnold Foundation gave $1 million to help launch the venture.
“We are thrilled to support Civica Rx as it makes good on its pledge to reduce chronic drug shortages and help make essential medications, like these two antibiotics, more accessible and affordable for all,” Dr. Angela Shippy, chief quality officer at Memorial Hermann, said in a statement.
The direct collaboration between hospital and drugmaker is part of a larger trend in health care as traditional boundaries are blurred to create efficiencies and bring down costs.