Experts Applaud Hospitals’ Gumption In Producing Own Drugs, But Question If It Will Make A Difference
"While it is an intriguing business opportunity, it is not without risks since it isn't cheap to become a manufacturer and generic competition is harsh," says Scott Knoer, Cleveland Clinic's chief pharmacy officer.
Health System-Led Drug Company Unlikely To Make A Dent In Drug Prices, Shortages
As four not-for-profit health systems unveiled plans to create their own generic drug company Thursday, experts say they'll face an uphill battle to make a significant dent in one of the fastest-growing industry expenses and persistent problems: rising drug prices and drug shortages. Intermountain Healthcare, Ascension, SSM Health and Trinity Health are working with the U.S. Department of Veterans Affairs to pool their capital and 450 total hospitals to fight back against drug companies that unexpectedly hike the prices of decades-old off-patent generic drugs with minimal competition. They also look to create a more reliable supply of generic drugs like saline and sodium bicarbonate that are vulnerable to shortages. (Kacik, 1/18)
Generic Drugmaker Stocks Dip Amid Reports Of Competition From Health Systems
Generic drugmakers faced a tumultuous trading day on the stock market Thursday following the news that four large health systems plan to enter their line of business. Intermountain Healthcare, Ascension, SSM Health and Trinity Health announced Thursday its aggressive plan to try to rein in the cost of drugs. Pharmaceutical company stocks were down early in the day, ending with significant drops for both Teva Pharmaceuticals and Endo Pharmaceuticals, both of which make sterile injectables, an area the systems hope to enter. Teva was down 3.58% and Endo was down 4.42%. Valeant Pharmaceuticals saw a similarly large drop: 3.18%. Mylan, a major generic player, didn't see a steep drop. (Bannow, 1/18)