Foundations Help Fund Nonprofit Generics Company

Three national foundations have committed $30 million to the launch of a not-for-profit generic drug company — first announced in January — citing the rising prices of generics and the risks patients face from drug shortages.

The Laura and John Arnold Foundation, the Peterson Center on Healthcare and the Gary and Mary West Foundation each contributed $10 million toward the nonprofit, Civica Rx, joining with seven U.S. hospital systems that represent approximately 500 hospitals.

The nonprofit will initially focus on 14 hospital-administered generic drugs that it considers essential and which are experiencing chronic shortages.