Medical journal says CivicaScript’s approach holds potential to transform the pharmaceutical supply chain

The experiment seems to be working.

A new report in Catalyst, a publication that explores health care delivery and is published by The New England Journal of Medicine, finds that Lehi-based CivicaScript is succeeding in its strategy to lower high-priced generic medicine costs through “disruptive collaboration.”

The study reports that consumers saved an average of 64 percent when they switched to CivicaScript’s medicine after taking other versions of the same generic drug. Payers — the insurance companies that generally bear a larger share of total medicine costs — saved 92 percent over previous spending.

“These data show that when you align the interests of patients, health care institutions and society, there is great potential to create a more equitable, cost-effective health care system,” said report co-author Carter Dredge, executive director of the Intermountain Health Institute.

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, many more health and hospital systems and insurance companies have affiliated with CivicaScript, including most of Blue Cross Blue Shield member associations nationwide. 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.

Catalyst’s report, “Changing the Script on Drug Pricing: A New Type of Supplier Creates Savings for Patients and Plans,” details savings from the company’s proof-of-concept drug, abiraterone acetate, a prostate cancer treatment sold under the brand name Zytiga. At the time of the analysis, CivicaScript’s abiraterone had a maximum retail price of $171 per month, which is substantially lower than the cost charged to patients and health plans for competing generic versions of the drug. Patients who switched from other versions of generic abiraterone to the CivicaScript drug saved about $81 per month on average (64 percent). Patients also experienced much more stable out-of-pocket costs over the course of the year. Health insurance plans saved an average of $1,796 per patient per month (92 percent). Both Medicare and commercial insurance plans achieved similar savings.

“It is gratifying to see the savings impact we are having, even with just one product in a fairly short time frame,” said CivicaScript President Brent J. Eberle. “Studies also show that lower medication costs lead to better patient adherence and improved health outcomes.”

Eberle expects to drive even greater patient and payer savings with additional CivicaScript products launching this year.