Civica Rx Gets More Backing in Effort to Reduce Drug Prices and Shortages

Civica Rx, the nonprofit generic drug company, continues to expand its reach as it tries to reduce drug prices and shortages.

Under a recently signed contract, the state of California put up $50 million to have Civica Rx manufacture and distribute low-cost biosimilars for the three most used short- and long-acting insulins. California is collaborating in the effort with partners representing the spectrum of the diabetes ecosystem, including health systems, payers, clinical trials experts, drug substance manufacturers and others.

Civica also is slated to open its first production plant in Virginia later this year and will build a laboratory testing facility nearby. The manufacturing plant initially will make insulin and other injectable medications, with products slated to hit the market in 2024. Civica will sell the three insulin medications for $30 per vial or $55 for a pack of five injectable pens. In a recent Oliver Wyman podcast, Ned McCoy, Civica Rx CEO, said the company plans further disruption to the drug manufacturing supply chain through CivicaScript, which will distribute low-cost generics to the direct-to-consumer market.

CivicaScript works with manufacturing partners, payers, pharmacy benefits managers and pharmacies across the country who pass along savings to their customers outside the hospital setting on low-cost generic medicines.

Among the Points McCoy Shared during the Podcast:

• Civica won’t be able to make all the drugs it sells in its new plant. The company will continue partnering with others and will operate on a “cost-plus model” to achieve the lowest cost. Having manufacturing capability will help Civica control the quality and supply of medications and to bring more of this work onshore.
• Over the next three to five years, Civica will continue to focus on improving service to its hospital and health system customers while trying to add more provider organizations as members.
• Civica Rx will remain focused on medications that are at risk of shortages and work to expand into medications where there’s a need for greater price transparency. “We will be very transparent, and we will charge one price for all,” McCoy said.
• CivicaScript, the sister company to Civica Rx, will concentrate on retail generics that are priced “higher than they should be,” he added.