Civica Rx, Xellia Sign Supply Agreement to Reduce Chronic Drug Shortages

Xellia becomes Civica's first supplier partner and will produce antibiotics in short supply in U.S. hospitals.

Civica Rx and Xellia Pharmaceuticals have signed a supply agreement under which Xellia will make antibiotics for Civica's member health systems, the two companies announced Wednesday.

The supply agreement, which includes the antibiotics Vancomycin and Daptomycin, marks the first time that non-profit Civica has launched the production of generic drugs – and the initial medications to be supplied – since the company was established in mid-2018 to address chronic drug shortages.

Civica has committed to partnering with suppliers to deliver 14 essential generic medications this year.

To meet the demand, Xellia, headquartered in Copenhagen, Denmark, will expand its manufacturing and sales within the United States. Xellia produces its own pharmaceutical ingredients, and finished injectable drugs for bacterial and fungal infections.

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"We thank Xellia for helping to lead the way in efforts to reduce chronic generic drug shortages in the U.S., including treatments for serious infections caused by bacteria that are resistant to other antibiotics," Martin VanTrieste, president and CEO of Lehi, Utah-based Civica, said in a media release.

"By helping to stabilize the supply of Vancomycin and Daptomycin, we will have a direct impact on patient safety and public health by providing consistent access to antibiotics that are important treatment options in the management of difficult-to-treat and life-threatening infections," VanTrieste said.

Xellia will make drugs for Civica under Xellia's Abbreviated New Drug Application and Civica labeling and New Drug Code.

"We are honored to work with Civica, an innovator in addressing generic drug shortages," said Carl-Aake Carlsson, CEO Xellia Pharmaceuticals. “Our collaboration also supports Xellia's long-term ambition of mitigating anti-infective drug shortages across the U.S."