{"id":19909,"date":"2019-05-15T21:05:02","date_gmt":"2019-05-15T21:05:02","guid":{"rendered":"https:\/\/associatednews.us\/content\/2019\/05\/15\/drugmaker-created-to-reduce-shortages-and-prices-unveils-its-first-products\/"},"modified":"2019-05-15T21:05:02","modified_gmt":"2019-05-15T21:05:02","slug":"drugmaker-created-to-reduce-shortages-and-prices-unveils-its-first-products","status":"publish","type":"post","link":"https:\/\/associatednews.us\/content\/drugmaker-created-to-reduce-shortages-and-prices-unveils-its-first-products\/","title":{"rendered":"Drugmaker Created To Reduce Shortages And Prices Unveils Its First Products"},"content":{"rendered":"<p><span style=\"font-style:italic;font-size:16px\">By  <a class=\"colorbox\" href=\"https:\/\/www.npr.org\/sections\/health-shots\/2019\/05\/15\/723616282\/drugmaker-created-to-reduce-shortages-and-prices-unveils-its-first-products?utm_medium=RSS&amp;utm_campaign=healthcare\">Selena Simmons-Duffin<\/a><\/span>  <\/p>\n<div class=\"ftpimagefix\" style=\"float:left\"><a class=\"colorbox\" rel=\"nofollow\" href=\"https:\/\/www.npr.org\/sections\/health-shots\/2019\/05\/15\/723616282\/drugmaker-created-to-reduce-shortages-and-prices-unveils-its-first-products?utm_medium=RSS&amp;utm_campaign=healthcare\"><img decoding=\"async\" width=\"150\" src=\"https:\/\/media.npr.org\/assets\/img\/2019\/05\/15\/iv_ap_18008682422645_custom-4d08b644c9beebb95c785945b8306c549ab0221e-s1100-c15.jpg\" alt><\/p>\n<div>\n            <a class=\"colorbox\" rel=\"nofollow\" href=\"https:\/\/media.npr.org\/assets\/img\/2019\/05\/15\/iv_ap_18008682422645_custom-4d08b644c9beebb95c785945b8306c549ab0221e-s1200.jpg\"><\/a><\/div>\n<div>\n<div>\n<div>\n            <a class=\"colorbox\" rel=\"nofollow\" href=\"https:\/\/media.npr.org\/assets\/img\/2019\/05\/15\/iv_ap_18008682422645_custom-4d08b644c9beebb95c785945b8306c549ab0221e-s1200.jpg\">Enlarge this image<\/a>\n        <\/div>\n<\/div>\n<div>\n<div>\n<div>\n<p>\n                Pharmacy technician Peggy Gillespie fills a syringe with an antibiotic at ProMedica Toledo Hospital in Toledo, Ohio, in January.<\/p>\n<p>                <b><\/p>\n<p>                    Tony Dejak\/AP<\/p>\n<p>                <\/b><br \/>\n                <b><b>hide caption<\/b><\/b>\n            <\/p>\n<\/p><\/div>\n<p>            <b><b>toggle caption<\/b><\/b>\n    <\/div>\n<p>    <span><\/p>\n<p>        Tony Dejak\/AP<\/p>\n<p>    <\/span>\n<\/div>\n<\/p><\/div>\n<p>On Wednesday, <a class=\"colorbox\" rel=\"nofollow\" href=\"https:\/\/civicarx.org\/\">Civica Rx<\/a>, a nonprofit drug company founded last year by a consortium of hospitals and foundations, said it had entered an agreement with a Danish drugmaker to make available injected forms of vancomycin and daptomycin, two antibiotics that are often in short supply.<\/p>\n<p>Civica Rx has plans to become an alternative source of generic drugs for hospitals and provide a steady supply of critical medicines at reasonable prices . <\/p>\n<p>The company&#8217;s initial plan is to make 14 drugs and offer them to member health systems. The antibiotics are the first two that Civica Rx has publicly announced. <\/p>\n<p>&#8220;Vancomycin is kind of the typical shortage drug because it&#8217;s generic and it&#8217;s an injectable and it&#8217;s critically needed,&#8221; says <a class=\"colorbox\" rel=\"nofollow\" href=\"https:\/\/pharmacyservices.utah.edu\/residency\/drug-info-staff.php\">Erin Fox<\/a>, a pharmacist who studies drug shortages at University of Utah Health, one of Civica Rx&#8217;s members. &#8220;But we just haven&#8217;t had a very good routine supply of it for a while now,&#8221; she explains. She also recently joined Civica Rx&#8217;s advisory board. <\/p>\n<p>When the heavy-duty antibiotic vancomycin is in short supply, Dr. James Augustine, an emergency physician at <a class=\"colorbox\" rel=\"nofollow\" href=\"https:\/\/www.mercy.com\/\">Mercy Health<\/a> hospitals in Cincinnati, gets worried. <\/p>\n<aside>\n<div><\/div>\n<\/aside>\n<p>&#8220;Vancomycin has been our last-ditch antibiotic for quite a few years,&#8221; Augustine says. &#8220;It is our go-to antibiotic for very, very sick people and those with resistant infections.&#8221; <\/p>\n<p>Augustine collects information on drug shortages and shares it with other health care professional across the country. Shortages of key drug are a big and persistent problem for hospitals, he says. <\/p>\n<p>&#8220;We have experienced shortages of most every drug,&#8221; he says. &#8220;It&#8217;s getting hard to keep track,&#8221; Augustine says. In a <a class=\"colorbox\" rel=\"nofollow\" href=\"http:\/\/newsroom.acep.org\/2018-05-22-Most-Emergency-Physicians-Report-Hospitals-Lack-Critical-Medicines-Not-Fully-Prepared-for-Disasters-Mass-Casualty-Incidents\">survey last year<\/a> of emergency physicians, 9 in 10 had experienced a shortage in the previous month.<\/p>\n<p>Shortages of vancomycin are a particular problem because it&#8217;s a powerful medicine that doesn&#8217;t have a good alternative, he says. <\/p>\n<p>It&#8217;s unclear why vancomycin, which has been a generic for many years, has experienced shortages, says University of Utah&#8217;s Fox. <\/p>\n<p>&#8220;Sometimes it&#8217;s just some kind of a supply constraint, or one company discontinuing production,&#8221; she says. &#8220;But we don&#8217;t always know the reasons for shortages. The companies won&#8217;t won&#8217;t tell us. In fact, pharma companies, while they&#8217;re required to report a shortage to the [Food and Drug Administration] FDA, they&#8217;re actually not required to provide the reason for that shortage to the FDA.&#8221;<\/p>\n<p>Neither vancomycin, whose name comes from the same root as vanquish, nor daptomycin drug is on the <a class=\"colorbox\" rel=\"nofollow\" href=\"https:\/\/www.fda.gov\/drugs\/drug-safety-and-availability\/drug-shortages\">FDA&#8217;s list<\/a> of drugs in short supply, but they both are on another <a class=\"colorbox\" rel=\"nofollow\" href=\"https:\/\/www.ashp.org\/Drug-Shortages\/Current-Shortages\">drug shortage list<\/a> that Fox helps manage, along with the reasons why, if available. Drug giant Pfizer, for example, lists shortages for both drugs because of &#8220;manufacturing delays.&#8221;<\/p>\n<p>Civica Rx won&#8217;t be making these drugs itself. Instead it has contracted with Danish drugmaker <a class=\"colorbox\" rel=\"nofollow\" href=\"https:\/\/xellia.com\/enUS\">Xellia<\/a> to make them with a Civica Rx label. Civica Rx&#8217;s member health systems currently include 800 hospitals across the country.<\/p>\n<p>Fox says the real innovation here is a new kind of contract between drugmakers and hospitals.<\/p>\n<p>&#8220;You can pretty much predict how much product you&#8217;re going to need at your hospital, and you can say, &#8216;Yep, I will purchase, say, 500 packages of this in a year,&#8221; she explains. &#8220;You would have to sign up for that and say, &#8216;I&#8217;m going to buy that,&#8217; and if you don&#8217;t, the company still gets the money.&#8221;<\/p>\n<p><!-- END ID=\"RES723641466\" CLASS=\"BUCKETWRAP INTERNALLINK INSETTWOCOLUMN INSET2COL \" --><\/p>\n<p>That &#8220;guaranteed volume&#8221; for Civica Rx is supposed to help with the periodic shortages. <\/p>\n<p>How much will the Civica Rx drugs cost? &#8220;Pricing will vary based on product,&#8221;company spokesperson Debbi Ford said in an email. She declined to provide specific prices.<\/p>\n<p>Vancomycin &#8220;right now is a fairly reasonable price,&#8221; says Martin VanTrieste, Civica&#8217;s president and CEO. &#8220;However daptomycin is one of those high-priced drugs, and we&#8217;ll be able to bring [it at] a significantly lower price.&#8221;<\/p>\n<p>VanTrieste says Civica&#8217;s pricing will be based on manufacturing costs, plus a &#8220;fair margin&#8221; for the drugmaker \u2014 in this case, Xellia. &#8220;Once we negotiate that price, we go back to our members and say, &#8216;I have vancomycin 1-gram vials I&#8217;m offering to you at &#8220;X&#8221; price. You want to opt in to purchase that product or opt out?&#8217; &#8220;<\/p>\n<p>Dr. James Augustine&#8217;s health system, Mercy Health, isn&#8217;t a Civica Rx member, although membership is open. It costs $300 per hospital bed to join, according to VanTrieste.<\/p>\n<p>Augustine is encouraged by what Civica Rx is trying to do. &#8220;It&#8217;s a fabulous idea,&#8221; he says. <\/p>\n<p>But the company&#8217;s existence underscores for him that up until now, generic drugmakers have failed patients and providers. &#8220;They have decided not to make a reliable source of these medicines available and where possible to jack up the prices to to incredible levels,&#8221; he said. &#8220;It&#8217;s disgusting.&#8221;<\/p>\n<p>&#8220;We always support additional competition to the market,&#8221; said Rachel Schwartz, a spokesperson for the Association for Accessible Medicines, a trade group for generic drugmakers, in an email.<\/p>\n<p>Civica Rx&#8217;s VanTrieste expects to be able to offer the two antibiotics to member health systems this summer. <\/p>\n<p>That&#8217;s when the experiment to prevent drug shortages and bring down prices will be put to a real-world test.<\/p>\n<p><strong><a class=\"colorbox\" rel=\"nofollow\" href=\"https:\/\/blockads.fivefilters.org\/\">Let&#8217;s block ads!<\/a><\/strong> <a class=\"colorbox\" rel=\"nofollow\" href=\"https:\/\/blockads.fivefilters.org\/acceptable.html\">(Why?)<\/a><\/p>\n<p>Source:: <a href=\"https:\/\/www.npr.org\/sections\/health-shots\/2019\/05\/15\/723616282\/drugmaker-created-to-reduce-shortages-and-prices-unveils-its-first-products?utm_medium=RSS&amp;utm_campaign=healthcare\" class=\"colorbox\" title=\"Drugmaker Created To Reduce Shortages And Prices Unveils Its First Products\" rel=\"nofollow\">https:\/\/www.npr.org\/sections\/health-shots\/2019\/05\/15\/723616282\/drugmaker-created-to-reduce-shortages-and-prices-unveils-its-first-products?utm_medium=RSS&amp;utm_campaign=healthcare<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<div class=\"ftpimagefix\" style=\"float:left\"><a class=\"colorbox\" rel=\"nofollow\" href=\"https:\/\/www.npr.org\/sections\/health-shots\/2019\/05\/15\/723616282\/drugmaker-created-to-reduce-shortages-and-prices-unveils-its-first-products?utm_medium=RSS&amp;utm_campaign=healthcare\"><img decoding=\"async\" width=\"150\" src=\"https:\/\/media.npr.org\/assets\/img\/2019\/05\/15\/iv_ap_18008682422645_custom-4d08b644c9beebb95c785945b8306c549ab0221e-s1100-c15.jpg\" alt><\/p>\n<div>\n            <a class=\"colorbox\" rel=\"nofollow\" href=\"https:\/\/media.npr.org\/assets\/img\/2019\/05\/15\/iv_ap_18008682422645_custom-4d08b644c9beebb95c785945b8306c549ab0221e-s1200.jpg\"><\/a><\/div>\n<div>\n<div>\n<div>\n            <a class=\"colorbox\" rel=\"nofollow\" href=\"https:\/\/media.npr.org\/assets\/img\/2019\/05\/15\/iv_ap_18008682422645_custom-4d08b644c9beebb95c785945b8306c549ab0221e-s1200.jpg\">Enlarge this image<\/a>\n        <\/div>\n<\/div>\n<div>\n<div>\n<div>\n<p>\n                Pharmacy technician Peggy Gillespie fills a syringe with an antibiotic at ProMedica Toledo Hospital in Toledo, Ohio, in January.<\/p>\n<p>                <b><\/p>\n<p>                    Tony Dejak\/AP<\/p>\n<p>                <\/b><br \/>\n                <b><b>hide caption<\/b><\/b>\n            <\/p>\n<\/p><\/div>\n<p>            <b><b>toggle caption<\/b><\/b>\n    <\/div>\n<p>    <span><\/p>\n<p>        Tony Dejak\/AP<\/p>\n<p>    <\/span>\n<\/div>\n<\/p><\/div>\n<p>On Wednesday, <a class=\"colorbox\" rel=\"nofollow\" href=\"https:\/\/civicarx.org\/\">Civica Rx<\/a>, a nonprofit drug company founded last year by a consortium of hospitals and foundations, said it had entered an agreement with a Danish drugmaker to make available injected forms of vancomycin and daptomycin, two antibiotics that are often in short supply.<\/p>\n<p>Civica Rx has plans to become an alternative source of generic drugs for hospitals and provide a steady supply of critical medicines at reasonable prices . <\/p>\n<p>The company&#8217;s initial plan is to make 14 drugs and offer them to member health systems. The antibiotics are the first two that Civica Rx has publicly announced. <\/p>\n<p>&#8220;Vancomycin is kind of the typical shortage drug because it&#8217;s generic and it&#8217;s an injectable and it&#8217;s critically needed,&#8221; says <a class=\"colorbox\" rel=\"nofollow\" href=\"https:\/\/pharmacyservices.utah.edu\/residency\/drug-info-staff.php\">Erin Fox<\/a>, a pharmacist who studies drug shortages at University of Utah Health, one of Civica Rx&#8217;s members. &#8220;But we just haven&#8217;t had a very good routine supply of it for a while now,&#8221; she explains. She also recently joined Civica Rx&#8217;s advisory board. <\/p>\n<p>When the heavy-duty antibiotic vancomycin is in short supply, Dr. James Augustine, an emergency physician at <a class=\"colorbox\" rel=\"nofollow\" href=\"https:\/\/www.mercy.com\/\">Mercy Health<\/a> hospitals in Cincinnati, gets worried. <\/p>\n<aside>\n<div><\/div>\n<\/aside>\n<p>&#8220;Vancomycin has been our last-ditch antibiotic for quite a few years,&#8221; Augustine says. &#8220;It is our go-to antibiotic for very, very sick people and those with resistant infections.&#8221; <\/p>\n<p>Augustine collects information on drug shortages and shares it with other health care professional across the country. Shortages of key drug are a big and persistent problem for hospitals, he says. <\/p>\n<p>&#8220;We have experienced shortages of most every drug,&#8221; he says. &#8220;It&#8217;s getting hard to keep track,&#8221; Augustine says. In a <a class=\"colorbox\" rel=\"nofollow\" href=\"http:\/\/newsroom.acep.org\/2018-05-22-Most-Emergency-Physicians-Report-Hospitals-Lack-Critical-Medicines-Not-Fully-Prepared-for-Disasters-Mass-Casualty-Incidents\">survey last year<\/a> of emergency physicians, 9 in 10 had experienced a shortage in the previous month.<\/p>\n<p>Shortages of vancomycin are a particular problem because it&#8217;s a powerful medicine that doesn&#8217;t have a good alternative, he says. <\/p>\n<p>It&#8217;s unclear why vancomycin, which has been a generic for many years, has experienced shortages, says University of Utah&#8217;s Fox. <\/p>\n<p>&#8220;Sometimes it&#8217;s just some kind of a supply constraint, or one company discontinuing production,&#8221; she says. &#8220;But we don&#8217;t always know the reasons for shortages. The companies won&#8217;t won&#8217;t tell us. In fact, pharma companies, while they&#8217;re required to report a shortage to the [Food and Drug Administration] FDA, they&#8217;re actually not required to provide the reason for that shortage to the FDA.&#8221;<\/p>\n<p>Neither vancomycin, whose name comes from the same root as vanquish, nor daptomycin drug is on the <a class=\"colorbox\" rel=\"nofollow\" href=\"https:\/\/www.fda.gov\/drugs\/drug-safety-and-availability\/drug-shortages\">FDA&#8217;s list<\/a> of drugs in short supply, but they both are on another <a class=\"colorbox\" rel=\"nofollow\" href=\"https:\/\/www.ashp.org\/Drug-Shortages\/Current-Shortages\">drug shortage list<\/a> that Fox helps manage, along with the reasons why, if available. Drug giant Pfizer, for example, lists shortages for both drugs because of &#8220;manufacturing delays.&#8221;<\/p>\n<p>Civica Rx won&#8217;t be making these drugs itself. Instead it has contracted with Danish drugmaker <a class=\"colorbox\" rel=\"nofollow\" href=\"https:\/\/xellia.com\/enUS\">Xellia<\/a> to make them with a Civica Rx label. Civica Rx&#8217;s member health systems currently include 800 hospitals across the country.<\/p>\n<p>Fox says the real innovation here is a new kind of contract between drugmakers and hospitals.<\/p>\n<p>&#8220;You can pretty much predict how much product you&#8217;re going to need at your hospital, and you can say, &#8216;Yep, I will purchase, say, 500 packages of this in a year,&#8221; she explains. &#8220;You would have to sign up for that and say, &#8216;I&#8217;m going to buy that,&#8217; and if you don&#8217;t, the company still gets the money.&#8221;<\/p>\n<p><!-- END ID=\"RES723641466\" CLASS=\"BUCKETWRAP INTERNALLINK INSETTWOCOLUMN INSET2COL \" --><\/p>\n<p>That &#8220;guaranteed volume&#8221; for Civica Rx is supposed to help with the periodic shortages. <\/p>\n<p>How much will the Civica Rx drugs cost? &#8220;Pricing will vary based on product,&#8221;company spokesperson Debbi Ford said in an email. She declined to provide specific prices.<\/p>\n<p>Vancomycin &#8220;right now is a fairly reasonable price,&#8221; says Martin VanTrieste, Civica&#8217;s president and CEO. &#8220;However daptomycin is one of those high-priced drugs, and we&#8217;ll be able to bring [it at] a significantly lower price.&#8221;<\/p>\n<p>VanTrieste says Civica&#8217;s pricing will be based on manufacturing costs, plus a &#8220;fair margin&#8221; for the drugmaker \u2014 in this case, Xellia. &#8220;Once we negotiate that price, we go back to our members and say, &#8216;I have vancomycin 1-gram vials I&#8217;m offering to you at &#8220;X&#8221; price. You want to opt in to purchase that product or opt out?&#8217; &#8220;<\/p>\n<p>Dr. James Augustine&#8217;s health system, Mercy Health, isn&#8217;t a Civica Rx member, although membership is open. It costs $300 per hospital bed to join, according to VanTrieste.<\/p>\n<p>Augustine is encouraged by what Civica Rx is trying to do. &#8220;It&#8217;s a fabulous idea,&#8221; he says. <\/p>\n<p>But the company&#8217;s existence underscores for him that up until now, generic drugmakers have failed patients and providers. &#8220;They have decided not to make a reliable source of these medicines available and where possible to jack up the prices to to incredible levels,&#8221; he said. &#8220;It&#8217;s disgusting.&#8221;<\/p>\n<p>&#8220;We always support additional competition to the market,&#8221; said Rachel Schwartz, a spokesperson for the Association for Accessible Medicines, a trade group for generic drugmakers, in an email.<\/p>\n<p>Civica Rx&#8217;s VanTrieste expects to be able to offer the two antibiotics to member health systems this summer. <\/p>\n<p>That&#8217;s when the experiment to prevent drug shortages and bring down prices will be put to a real-world test.<\/p>\n<p><strong><a class=\"colorbox\" rel=\"nofollow\" href=\"https:\/\/blockads.fivefilters.org\/\">Let&#8217;s block ads!<\/a><\/strong> <a class=\"colorbox\" rel=\"nofollow\" href=\"https:\/\/blockads.fivefilters.org\/acceptable.html\">(Why?)<\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[47],"tags":[],"class_list":["post-19909","post","type-post","status-publish","format-standard","hentry","category-health"],"_links":{"self":[{"href":"https:\/\/associatednews.us\/content\/wp-json\/wp\/v2\/posts\/19909","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/associatednews.us\/content\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/associatednews.us\/content\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/associatednews.us\/content\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/associatednews.us\/content\/wp-json\/wp\/v2\/comments?post=19909"}],"version-history":[{"count":0,"href":"https:\/\/associatednews.us\/content\/wp-json\/wp\/v2\/posts\/19909\/revisions"}],"wp:attachment":[{"href":"https:\/\/associatednews.us\/content\/wp-json\/wp\/v2\/media?parent=19909"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/associatednews.us\/content\/wp-json\/wp\/v2\/categories?post=19909"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/associatednews.us\/content\/wp-json\/wp\/v2\/tags?post=19909"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}