Blue Cross and Civica Rx Form New Company to Develop Generic Drugs

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Blue Cross and Civica Rx Form New Company to Develop Generic Drugs

 

In 2018, Civica Rx was founded by five healthcare systems as a not-for-profit generic drugmaker with a goal of developing 14 common generic drugs used by hospital systems across the country. This morning, Civica Rx is expanding that mission through a collaboration with Blue Cross and Blue Shield.

Civica Rx and 18 independent Blue Cross and Blue Shield (BCBS) companies formed a new subsidiary dedicated to lowering the cost of select generic drugs. The new entity, funded by $55 million from the BCBS businesses, was born as a response to the high costs of prescription medicines in the United States and concerns about the overall affordability of health care. The new subsidiary is intended to help Civica expand on its mission beyond the hospital setting. The funding will allow the subsidiary to look at other common generic drugs that are deemed costly to the general public.  

The hope for this new business hinges on the acquisition and development of Abbreviated New Drug Applications (ANDAs) for select generic drugs. The subsidiary will work with its parent company, as well as manufacturing partners, “to bring more affordable generic drugs to uncompetitive markets in exchange for aggregated volume and multiyear purchasing commitments.” Civica Rx and BCBS have identified several generic drugs to focus on due to the “high potential for savings.” The new subsidiary is expected to grow and evolve into a platform that will be able to increase competition for additional generic drugs, the groups said in their announcement.

“Civica’s mission is to make quality medicines available and affordable to everyone,” Martin VanTrieste, Civica president and chief executive officer, said in a statement. “Serving patients is our privilege and our responsibility—one that we are proud to share with BCBS companies who are committed to tackling one of the most important health care challenges of our time. Numerous studies confirm that medication costs can dictate whether individuals fill or ration their generic prescriptions. Together with BCBS companies, we are taking action to put patients first.”

Dan Liljenquist, chairman of the Civica board of directors, said partnering with BCBS will strengthen their position in being able to make a significant impact in lowering the cost of generic drugs.

“Civica is already bringing value—in quality, supply and price—to the in-patient hospital market and with BCBS will expand that mission to reach individuals and families buying generic prescriptions in hospitals and pharmacies,” Liljenquist said.  

Scott P. Serota, president and CEO of BCBS Association, added in that everyone should have access to health care and the partnership with Civica will improve access to much-needed medications.

This partnership will result in meaningful savings for individuals and families, with the first generic medications becoming available by early 2022.

The partnership between Civica Rx and Blue Cross Blue Shield is the latest move made by companies and other entities to address the cost of high prescription drugs. For example, the recently-launched EQRx, has a plan for market-based solutions to drug prices that will keep retail costs low. Alexis Borisy, chairman and chief executive officer of EQRx, said the prices of new therapeutic approaches are “pushing beyond the limits of common sense, preventing people and society from equally benefiting from innovation.”

Governments are also looking to push into generics. Earlier this month, the state of California began to explore the possibility of selling its own brand of generic drugs to lower costs. Broad outlines of the state’s plan, would have the government of California contracting with one or more generic drug companies to manufacture specific prescriptions under the state’s label. They would then be sold to Californians at a lower cost.

 

 

BioSpace source:

https://www.biospace.com/article/blue-cross-and-civica-rx-form-drug-company-to-develop-generic-drugs