Not-for-Profit Generic Drug Company Civica Rx Inks 1st Supplier Deal with Xellia Pharma

In January 2018, Civica Rx was launched by five healthcare systems as a not-for-profit generic drug company. The systems were the U.S. Department of Veterans Affairs (VA), Intermountain Healthcare, Ascension, SSM Health and Trinity Health. It almost immediately expanded to seven health systems and three philanthropic groups. A year later, it expanded to relationships with approximately 800 generic drug manufacturers and participating hospitals with plans to offer 20 generic drugs. Today, Civica Rx announced it had inked a product supply agreement with Xellia Pharmaceuticals, where Xellia will manufacture essential antibiotics, including Vancomycin and Daptomycin, for Civica’s members. Xellia is headquartered in Copenhagen, Denmark. Originally Civica planned to offer 14 generic drugs but expanded it to 20 as interest and participation grew. Civica’s goal is at least two-fold. First, it’s to guarantee that generic drugs remain available. According to ABC News, Drug shortages have been widespread for more than a decade, particularly inexpensive generic drugs. The reasons behind the shortages are manufacturer consolidation, halting low-profit drug production and fixing manufacturing problems.