Essential Medicines Company Civica Rx Turns 2, Marking Numerous Milestones

Launched in 2018 as a nonprofit generic drug company to address the problem of chronic drug shortages, Civica Rx (Civica, Inc) has proven to be a viable industry player, ensuring stable and predictable supplies of over 20 essential generic drugs so far, and generating millions of dollars in savings for hospitals.

The brainchild of Intermountain Healthcare’s Dan Liljenquist, Civica brings together health systems and drug manufacturers to work collaboratively, ensuring a stable supply of fairly priced generic drugs for hospitals and predictable volumes for Civica and partnering manufacturers. As it celebrates its two-year anniversary, Liljenquist emphasizes that Civica is sustained by its mission: Making quality generic medications accessible and affordable to everyone.

“The fact that in such a short period of time Civica medicines are treating millions of patients is eye-opening,” said Liljenquist, senior vice president and chief strategy officer at Intermountain Healthcare and chairman of Civica’s board. “It shows the power of collaboration and the promise of this organization and its many partners to help millions and millions more people. I am so proud of the Civica team for all they have accomplished.”

Surging demand for medications used for patients with COVID-19 has helped to validate Civica’s unique supply model and has demonstrated the value of having hospitals prioritize the medications they need for patient care.

“COVID-19 is a defining moment as Civica, our supply partners, and hospital pharmacists and doctors work together to meet spikes in demand for medications for COVID patients,” said Martin VanTrieste, president and CEO of Civica. “Because the Civica model includes building stockpiles or safety stocks, we have been able to meet demand in hospitals and also provide millions of doses of medicines to the U.S. Strategic National Stockpile.”

Civica’s first two years, by the numbers:

• Today, Civica serves over 50 health systems, representing more than 1,200 hospitals and over 30 percent of all hospital beds in the United States. Kaiser Permanente is the most recent health system to join Civica.
• Civica has provided over nine million vials or syringes of generic medications to hospitals, which have been used to treat up to three million patients.
• Eleven Civica medications are being used to help treat COVID-19 patients, including neuromuscular blocking agents, sedatives, pain relievers, and blood thinners. Civica and its supply partners met surge hospital demand of up to 350 percent for some medications and also provided 2.1 million vials to the U.S. Strategic National Stockpile.
• Civica now has 40 different medications under contract for hospitals and is building towards 100 drugs by 2023.

Civica is at the forefront of efforts to establish end-to-end manufacturing of generic drugs in the U.S. to address a national security risk exposed by the pandemic. It is working with Phlow, a Virginia-based public benefit corporation, with support from the federal government, to build new manufacturing capacity in the United States. As part of that effort, Civica will build a state-of-the-art facility to make sterile injectable drugs.

Also this year, Civica and 18 Blue Cross Blue Shield plans announced an initiative to lower the cost of drugs for consumers. The effort, which focuses on a targeted list of generic drugs in the retail setting, provides opportunities for additional health plans, states, employers and pharmacies to join.

What They’re Saying:

Hospital Systems

• “Without the ready supply of critical medications from Civica, crucial therapies for our patients could have been compromised during the worst possible time at the epicenter of the pandemic."
  • Mark Pollard, VP of Professional Services, NYU Langone Health
• “Civica was created to tackle a drug shortage crisis that has negatively impacted our patients and health systems for years. Its simple, yet innovative model has helped mitigate uncertainty, price gouging and drug shortages. Being part of a committee that advises Civica, which consults with physicians and pharmacists to prioritize drugs having the biggest impact on patient outcomes, is especially rewarding. This unique model of collaboration represents another breakthrough in Civica’s quest to end drug shortages.”
  • Mo Khabat, Vice President - Pharmacy Services and Health Research, SSM Health, and member of Civica’s Drug Selection Advisory Committee
• “Collaborations like Civica are helping providers deliver the kind of help people need, when and where they need it, at a lower cost. These types of nontraditional public-minded partnerships will change the country for the better.”
  • Marc Harrison, MD, Intermountain Healthcare President and CEO

Manufacturing Partners

• “Xellia is very proud to be able to say that we were one of the first suppliers to sign a contract with Civica. From the start, we believed in Civica’s mission to ensure essential generic medicines are accessible and affordable in line with our purpose of saving lives. It has been a pleasure to work with them and to watch as they have grown and become an influential partner in Healthcare. The ability to be long-term partners with a shared commitment to both supply and quality is paramount to Civica and Xellia. Congratulations to Civica on your two-year anniversary. We look forward to supporting you in your continued success.”
  • Pete Baker, Chief Commercial Officer, North America, Xellia Pharmaceuticals
• “Hikma is proud to partner with Civica in providing essential medicines to hospitals and their patients in this time of national crisis. It is extremely motivating for our team to work closely together at a time when providing the US healthcare system with a reliable supply of quality medicines has never been more important. We are proud to work with Civica in making a positive impact supporting all of the brave individuals fighting this disease in hospitals throughout the nation.”
  • Joel Rosenstack, EVP, Commercial, US Injectables, Hikma
• "Congratulations to Civica on its two-year milestone! Our collaboration promises to provide patients, doctors and hospitals with the medicines they need when they need them, and we look forward to working with Civica for years to come."
  • Carol Lynch, President, Sandoz Inc.

Observers

• “As a member of Civica’s volunteer advisory group, I have watched, with great admiration, Civica do what it set out to do. It is helping to stabilize the supply of the most essential medicines needed in hospitals, which means more patients are receiving optimal care. It is also reducing costs by supplying these medicines at steady, fair prices and avoiding the price hikes that have occurred all too frequently for far too long. Congratulations on a remarkable two years.”
  • Former Senator Tom Daschle
• “Civica is working at the cutting edge to make drug shortages a thing of the past, even during COVID-19. The fact that Civica, with its hospital and manufacturing partners, has been able to zero in on the most urgent medication gaps and so quickly fulfill the need for patients across the country is truly amazing. Congratulations to all.”
  • Former Senator Bill Frist
• “For 20 years there has been a lot of hand wringing about drug shortages but little progress. Thank goodness for Civica Rx. It stepped up to the plate and today is poised to deliver 40 drugs in shortage to its member hospitals. This is a perfect example of how, when people truly care about patients, solutions are possible. Congratulations to the Civica team and partners!”
  • Rosemary Gibson, Author, China Rx-Exposing the Risks of America's Dependence on China for Medicine

About Civica Rx

Civica Rx is a 501(c)(4) social welfare organization established in 2018 by health systems (CommonSpirit Health, HCA Healthcare, Intermountain Healthcare, Mayo Clinic, Providence St. Joseph Health, SSM Health, and Trinity Health) and philanthropies (Gary and Mary West Foundation, Laura and John Arnold Foundation, and Peterson Center on Healthcare) to reduce chronic generic drug shortages and related high prices in the United States. Led by an experienced team of health care and pharmaceutical industry leaders, Civica is making strides to ensure patients and their needs come first and that essential generic medications are accessible and affordable. Since established, the #1 Policy for the Civica team has been “Do What Is in the Best Interest of Patients.” View an interactive timeline at www.civicarx.org.

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