Trinity Health and Partners Take Next Step Establishing Civica Rx, a Not-for-profit Generic Drug Company and Industry Disruptor

Livonia, Michigan, September 6, 2018 – Trinity Health and the consortium which revealed its plan to create a not-for-profit generic drug company in early 2018 today announced that the group has taken the next steps and established Civica Rx, a company created to correct a number of problems with consumer access to the nation's generic medicine supply. Civica Rx will be led by CEO Martin VanTrieste, former chief quality officer for Amgen, one of the world’s largest pharmaceutical companies, and he will serve in the roll without compensation.

Civica Rx was formed to help patients by addressing shortages and high prices of life-saving generic medications. It will focus, initially, on 14 generic drugs used in hospitals, many of which face chronic shortages, putting patients at risk. The company is organized as a Delaware nonstock, not-for-profit corporation, and will be headquartered in Utah.

“The generic drug marketplace is broken and, in response, we have created a unique and innovative fix — a public utility that is governed, exclusively, for the good of the people it serves," said Richard J. Gilfillan, M.D., CEO of Trinity Health. "Civica Rx will not earn profits for its investors, but will, instead, ensure that patients receive the greatest benefit — access to the drugs they need at affordable price points."

Since the initiative was announced in January 2018, more than 120 health organizations representing about a third of the nation’s hospitals have expressed a commitment or interest in participating with the new company.

"Civica Rx represents a clear and viable path to solving a major problem," said Lou Fierens, executive vice president, administrative services and overseeing the system's supply chain initiatives. "Remember, we are talking about generic medications here — medications that should be widely and affordably available. Civica Rx will bring efficiency and transparency to a very inefficient and opaque marketplace. This will benefit society."

Initial governing members of Civica Rx include Catholic Health Initiatives, HCA Healthcare, Intermountain Healthcare, Mayo Clinic, Providence St. Joseph Health, SSM Health, and Trinity Health. These seven organizations, representing about 500 U.S. hospitals, will each provide leadership for the Civica Rx Board of Directors and will provide much of the initial capital for the company. The U.S. Department of Veterans Affairs (VA) will also work in consultation with Civica Rx to address its particular needs. New health systems participating with Civica Rx will be announced later this year.