Three national foundations will provide $30 million to Civica Rx https://www.civicarx.org, a new not-for-profit generic drug company, to help patients address the shortages and high prices for lifesaving medications.
Laura and John Arnold Foundation https://www.arnoldfoundation.org, Peterson Center on Healthcare https://www.pgpf.org, along with the Gary and Mary West Foundation https://www.gmwf.org are committed to providing $10 million each. The foundations have joined with seven large U.S hospital systems representing about 500 U.S hospitals as governing members of Civica Rx.
In committing $10 million, the philanthropic members are each making an initial $1 million contribution to Civica Rx plus a commitment of $9 million in loans to be used by the company in the future as necessary. Funds from the foundations will be used to exclusively fund programs and initiatives that will provide high-need populations with timely access to essential generic drugs at affordable prices.
“The formation of Civica Rx is a direct challenge to generic drug companies who have sharply and unfairly raised prices on many off-patent drugs over the last several years” according, to Shelley Lyford, President and CEO of the Gary and Mary West Foundation. “We all pay a price and lower income patients shoulder a particularly heavy burden.”
Civica Rx has identified 14 hospital-administered generic drugs as the initial focus for the company operating as a FDA approved manufacturer. The company will either directly manufacture generic drugs or sub-contract manufacturing to reputable contract manufacturing organizations, reports Martin VanTrieste, CEO Civica Rx. “ The company expects to have their first products on the market as early as 2019”.
VanTrieste further reports, “A third of the country’s hospitals have either expressed interest or are committed to participate with Civica Rx to stress a great need for this initiative. This will improve the situation for patients by bringing much needed competition to the generic drug market.”