There's Apple, Google, and Amazon looking at the healthcare marketplace, and it's making pharma a bit fearful. And beyond this industry, new distribution channels may also disrupt the pharmacy benefit management (PBM) business.
Last week, Intermountain Healthcare announced an initiative to establish a not-for-profit generic drug company aimed at ending shortages and reducing prices. Intermountain Healthcare is leading a collaboration with Ascension, SSM Health, and Trinity Health, in consultation with the U.S. Department of Veterans Affairs, to form the company. The five organizations represent more than 450 hospitals around the U.S. Last week's press release made clear price and availability are the key issues.
The new company intends to be an FDA approved manufacturer and will either directly manufacture generic drugs or sub-contract manufacturing to reputable contract manufacturing organizations, providing patients an affordable alternative to products from generic drug companies whose capricious and unfair pricing practices are damaging the generic drug market and hurting consumers. The company will also seek to stabilize the supply of essential generic medications administered in hospitals, many of which have fallen into chronic shortage. The new initiative will result in lower costs and more predictable supplies of essential generic medicines, helping ensure that patients and their needs come first in the generic drug marketplace.
The company will be guided by a roster of heavy-hitters that include the pharmaceutical industry, academia and government.
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