US hospitals launch non-profit generic drug producer to counter rising prices

Several American healthcare systems have joined forces to form a new non-profit pharmaceutical company to counter price gouging and scarcity of generic drugs by increasing their supply. Scott Gottlieb, the US Food and Drug Administration commissioner, has pledged to expedite approval of generic drug applications as one way to increase competition and supply, and to rein in prices. Civica Rx will initially work with generic manufacturers around the world but eventually hopes to increase production capacity within the US.