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Teva, Mylan & Co. Vs. Civica RX: When Hospitals Bite Back

Toegevoegd op 11-06-2019

While generic companies are embroiled in more price fixing investigations, some opioid scandals, and other mishaps, another presence has started encroaching on their sales. As mentioned in our previous article, which can be found here, Civica RX (Civica) will likely have a large impact on the revenue of generic companies that have a significant hospital presence. As such, we re-iterate the need to focus on Civica's moves, as it may start generating some ripples very soon. While we will try to focus on Teva (TEVA) and Mylan (MYL), given their dependence on generics and overall size, other related manufacturers will also be touched on.

What is Civica?
Civica is a not-for-profit, group purchasing organization on steroids that specifically targets generics used in the hospital setting (refer to our previous article for more details). After years of price increases and drug shortages, hospitals have had enough.

As a result of this, Civica was created to ensure better access to generics and more stable supplies. Civica has been continuously expanding their network, which appears to have increased from ~750, at the time of our first article, to ~800 member hospitals now. This number represents a significant segment of the total hospitals in the US and will likely continue to grow over time.

Read the article at Seeking Alpha

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