Anthem joins CivicaScript initiative to lower the cost of certain generic drugs

Photo: A.J. Mast/Getty Images

Civica Rx, the nonprofit organization founded in 2018 by health systems Intermountain, the Mayo Clinic, Providence St. Joseph Health and others to address generic drug shortages and high costs, has announced the addition of Anthem to its initiative.

Anthem is joining Civica Rx's operating unit, CivicaScript, as a new health insurer partner, joining the entity's cofounders, the Blue Cross Blue Shield Association and 17 independent and locally-operated Blue Cross and Blue Shield companies. 

Combined, CivicaScript partners represent close to 100 million lives, the organization said.

WHY THIS MATTERS

While many generic medicines cost less than brand-name drugs, some high-cost generics are more expensive due to lack of competition in the market. Generic medicines account for nearly 90% of all prescriptions. Numerous studies confirm that medication costs can dictate whether patients fill or ration their generic prescriptions. 

CivicaScript has the goal of lowering the cost of select high-cost generic medications. It will initially develop and manufacture six to 10 common but high-priced generic medicines for which there is currently not enough market competition to drive down price, Civica said. 

Using a cost-plus and price transparency model, CivicaScript also plans to deliver these medicines to U.S. patients at a fraction of their current cost, saving consumers hundreds of millions of dollars annually within a few years post launch, the company said. 

The first CivicaScript generic medicines will be available as early as 2022 through retail and mail-order pharmacies.

Catalent, a global drug development and manufacturing company, has entered into a long-term partnership with CivicaScript to produce essential generic medicines that are widely prescribed for patients. Catalent will develop a range of CivicaScript-owned generic drug Abbreviated New Drug Applications at its oral solids facilities in Somerset, New Jersey and Winchester, Kentucky.

Gina Guinasso, a former executive for OptumRx, has joined as president of CivicaScript. She formerly served as senior vice president of commercial and Medicare formulary strategy for OptumRx, and prior to that role held leadership positions in federal and state policy, reimbursement strategy and payer account management at Takeda Oncology, Cubist Pharmaceuticals and Acorda Therapeutics.

THE LARGER TREND

Civica Rx was founded in 2018 by health systems CommonSpirit Health, HCA Healthcare, Intermountain Healthcare, Mayo Clinic, Providence St. Joseph Health, SSM Health and Trinity Health and three philanthropies, the Laura and John Arnold Foundation, the Peterson Center on Healthcare and the Gary and Mary West Foundation, to address generic drug shortages and high costs. 

Kaiser Permanente and Memorial Hermann Health have since joined these organizations on Civica's Governing Board of Directors. Since its inception, more than 50 health systems – representing nearly 1,400 hospitals and one-third of all licensed hospital beds in the U.S. – have joined.

In 2020, Civica and the BCBS companies announced the formation of a new, yet-to-be-name subsidiary – now CivicaScript – that would focus on bringing lower-cost generic prescription medicines directly to consumers in hospitals or retail pharmacies. 

All of Civica's hospital system members will have access to the retail medications manufactured by CivicaScript. The company welcomes other health plans, employers, pharmacies, and health innovators to become partners.

ON THE RECORD

"By partnering with CivicaScript and introducing original and inventive approaches, we look forward to making high-cost medicines more affordable," said Jeffrey Alter, executive vice president, IngenioRx and Anthem Health Solutions. 

Catalent President and CEO Alessandro Maselli said, "Our experts in Somerset and Winchester have a proven track record of developing and launching new drugs, and with CivicaScript, we are in a position to offer a robust and efficient supply chain that can help increase access to vital medicines."

Twitter: @SusanJMorse
Email the writer: susan.morse@himssmedia.com