Lehi's Civica to supply generic medicines under contract with VA
Civica, a Lehi-based nonprofit pharmaceutical company founded to help mitigate the risks associated with generic drug shortages, has been awarded a Federal Supply Schedule contract by the U.S. Department of Veterans Affairs (VA) to supply it with essential generic medications via the VA Federal Supply Schedule Program.
As part of the contract, Civica’s products will be available for purchase through the Pharmaceutical Prime Vendor program. The products will be available to all the VA’s medical centers and outpatient clinics, as well as other federal agencies, including the Department of Defense.
The Veterans Health Administration is the largest integrated health care system in the United States. It operates 1,363 health care facilities, including 170 medical centers and 1,193 outpatient clinics.
“Civica is proud to be a partner to the VA and to the millions of Americans the system serves,” said Jennifer Spalding, chief commercial officer and general counsel of Civica. “Providing essential generic medicines to the VA will help its centers and clinics ensure a safe and steady supply of essential generic medications and allow them to protect the health of veterans and their families.”
Drug shortages are a persistent challenge to the U.S. health care industry, according to the Civica website. The American Society of Hospital Pharmacists reports hundreds of drugs on regular shortage, including many critical sterile injectables frequently used in urgent care settings. Shortages often force hospitals to expend additional resources, including staff time to find, procure and administer alternative
The CivicaScript not-for-profit generic drug company concept was launched in 2018 as Civica Rx by a group of seven health systems including Utah’s Intermountain Health. The group’s expressed goals at founding were to prevent and mitigate drug shortages and to significantly reduce the cost of high-priced generics. Civica Rx evolved to CivicaScript in 2020.
In addition to Intermountain Health (then known as Intermountain Health Care), the founding health systems included Catholic Health Initiatives (now CommonSpirit Health), HCA Healthcare, Mayo Clinic, Providence St. Joseph Health, SSM Health and Trinity Health. Three philanthropies were also part of the founding group: the Gary and Mary West Foundation, the Laura & John Arnold Foundation and the Peterson Center on Healthcare.
Today, more than 60 health systems, hospitals, philanthropic organizations and insurance companies have affiliated with CivicaScript, including most of Blue Cross Blue Shield member associations nationwide. Civica supplies more than 70 essential medicines frequently found in the FDA Drug Shortages Database to over 1,400 hospitals, supporting care for over 90 million patients. Dan Liljenquist, chief strategy officer at Intermountain Healthcare, is the board chair at CivicaScript.
CivicaScript’s business model is to manufacture low-cost generic medicines, then work with payers, pharmacy benefit managers and pharmacies across the country to pass along the cost savings to patients. The model focuses on transparency and collaboration throughout the value chain from manufacturing through dispensing — with every stakeholder along the way knowing the price of the medicine and driving savings through to the patient.