ST. LOUIS, MO (March 3, 2022) – Civica, Inc. (Civica, Civica Rx), co-founded by SSM Health and a number of the nation’s leading health systems, today announced plans to manufacture and distribute insulins that, once approved, will be available to people with diabetes at significantly lower prices than insulins currently on the market. The availability of affordable insulins will benefit people with diabetes who have been forced to choose between life-sustaining medicines and living expenses, particularly those who are uninsured or underinsured and often pay the most out of pocket for their medications.
Civica, along with CivicaScript and The Civica Foundation, is collaborating on this effort with partners that represent nearly every corner of the diabetes ecosystem, including health systems, philanthropists and foundations, JDRF and leading Blue Cross Blue Shield health plans. Distribution will begin in 2024.
“Civica’s business model is rooted in civic responsibility and stewardship for all people,” said Carter Dredge, SSM Health’s lead futurist and a Civica board member who helped start the non-profit drug manufacturer. “This is essential work for SSM Health and its partners in Civica – to ensure that exceptional healthcare is affordable and accessible for everyone.”
Martin VanTrieste, President and Chief Executive Officer of Civica Rx, added, “More than 8 million Americans rely on insulin to live, but many can’t afford to take the amount they need because of the historically high and prohibitive cost of insulin. We know that to really solve for the insulin cost and access challenges so many Americans face, we need a process – from manufacturing to setting a transparent price – that ultimately lowers the cost of the drug for those living with diabetes. In that spirit, we will ensure patients know where Civica’s low-cost insulin is available.”
Civica will produce three insulins – glargine, lispro and aspart (biologics corresponding to, and interchangeable with, Lantus, Humalog and Novolog respectively) – each of which will be available both in vials and prefilled pens. Civica will co-develop and manufacture the drug product, complete the clinical trials, and file the necessary applications for FDA approval. Civica plans to set a recommended price to the consumer of no more than $30 per vial and no more than $55 for a box of five pen cartridges, a significant discount to prices charged to uninsured individuals today. 1
Civica plans to sell its insulins at one low, transparent price for all, basing the price on the cost of development, production and distribution. As many as one quarter of insulin users skip doses or take less than prescribed amounts due to high costs, according to a recent study published in JAMA Internal Medicine. 2
The drug has become inaccessible for many, causing debilitating and preventable illness. This disproportionately impacts people with diabetes who are Native American, Hispanic, or Black, since they are more likely to be uninsured and underinsured. 3
Civica has entered into a co-development and commercial agreement with GeneSys Biologics for these three insulin biosimilars. Civica will use drug substances produced in partnership with GeneSys and will have exclusive rights in the U.S. to market and sell these insulins at costs that are substantially lower than what is currently available in the U.S.
“Diabetes patients shouldn’t have to choose between groceries and insulin, or ration or skip doses of their life-saving medicine,” Dredge added. “The transparent, not-for-profit approach that is built into Civica’s structure is called the Healthcare Utility Model, 4 and SSM Health and our partners are using it to create a movement in our industry and beyond to lower costs and improve health.”
In addition to helping co-found Civica, SSM Health has partnered with England’s famed Cambridge University, to create the Healthcare Utility Initiative, 5 whose goal is to encourage companies, philanthropists and entrepreneurs to replicate the novel business model on a global scale for the good of society. SSM Health has also partnered with Intermountain Healthcare, Presbyterian Healthcare Services, and Kaiser Permanente to co-create a non-profit digital healthcare utility, Graphite Health, intent on making digital healthcare applications more easily and affordably accessible.
1 Based on a publicly available current average list price of glargine (Lantus), lispro (Humalog) and aspart (Novolog) on https://www.goodrx.com/ on February 28, 2022.
2 JAMA, Cost-Related Insulin Underuse Among Patients with Diabetes, 2019; CDC NHIS Study, 2020
3 CDC, 2020 National Diabetes Statistics Report; NCBI, Diabetes in America
4 Carter Dredge, MHA and Stefan Scholtes, PhD. “The Health Care Utility Model: A Novel Approach to Doing Business.” New England Journal of Medicine Catalyst. July 8, 2021.
5 Cambridge University, Judge Business School: The Healthcare Utility Initiative.
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About SSM Health
SSM Health is a Catholic, not-for-profit health system serving the comprehensive health needs of communities across the Midwest through a robust and fully integrated health care delivery system. The organization’s nearly 40,000 employees and 11,000 providers are committed to providing exceptional health care services and revealing God’s healing presence to everyone they serve.
With care delivery sites in Illinois, Missouri, Oklahoma and Wisconsin, SSM Health includes 23 hospitals, more than 290 physician offices and other outpatient and virtual care services, 10 post-acute facilities, comprehensive home care and hospice services, a pharmacy benefit company, a health insurance company and an accountable care organization. It is one of the largest employers in every community it serves. For more information, visit ssmhealth.com or find us on Facebook and Twitter
