Angered by rising prices and persistent shortages of generic drugs, four of the nation’s largest hospital systems are forming a new, not-for-profit manufacturer.

The new company plans to either directly make or subcontract manufacturing to combat “capricious and unfair pricing practices” that are damaging the generic drug market and hurting consumers, according to a statement from the four hospital groups — Intermountain Healthcare, Ascension, SSM Health, and Trinity Health, which together run more than 300 hospitals.

Unlock this article by subscribing to STAT Plus and enjoy your first 30 days free!

GET STARTED

What is it?

STAT Plus is a premium subscription that delivers daily market-moving biopharma coverage and in-depth science reporting from a team with decades of industry experience.

What's included?

  • Authoritative biopharma coverage and analysis, interviews with industry pioneers, policy analysis, and first looks at cutting edge laboratories and early stage research
  • Subscriber-only networking events and panel discussions across the country
  • Monthly subscriber-only live chats with our reporters and experts in the field
  • Discounted tickets to industry events and early-bird access to industry reports

Leave a Comment

Please enter your name.
Please enter a comment.

  • sharks eating sharks. As a consumer I would not yet applaud. How about honest negotiations in the interest of the consumer.

  • Wow! The thought of a nonprofit drug manufacturer competing with the for-profit exploiters is really exciting. You should have a tremendous marketing advantage because there will be so much free publicity that you won’t have to spend money on advertising.

    • Do you have any idea how many millions of dollars it would take to open an FDA-approved manufacturing plant for just 1 medication? This will never happen.

Sign up for our Daily Recap newsletter

A roundup of STAT’s top stories of the day in science and medicine

Privacy Policy