CHARLOTTE, N.C. — ProvideGx, LLC, a consolidated subsidiary of Premier Inc. (NASDAQ: PINC) and a healthcare improvement company developing a more stable and reliable supply chain for generic drugs in short supply, is collaborating with Fresenius Kabi to help mitigate national shortages of injectable thiamine, lidocaine, diphenhydramine, hydromorphone and morphine sulfate.
Fresenius Kabi, a 2018 recipient of the Food and Drug Administration’s (FDA’s) Drug Shortage Assistance Award, is a global healthcare company that is a leading developer, manufacturer and supplier of injectable medicines used in hospitals and clinics to treat patients with critical and chronic conditions.
“Premier’s strategies to address drug shortages are already bearing fruit and showing demonstrable success in our ongoing efforts to permanently address this important issue,” said Premier’s President, Michael J. Alkire. “Fresenius Kabi is a quality manufacturer and the second supplier that we have collaborated with to aggregate demand and help create a predictable supply. Our flexible approach is designed to help provide additional sources of shortage drugs.”
After a period of decline, drug shortages in America increased significantly in 2018, with an estimated 124 drugs currently at risk or not readily available for U.S. hospitals, according to the FDA’s drug shortage list. With wide-ranging effects on patient care, drug shortages can add time and expense as providers search for therapeutic alternatives and manage supplies, potentially delaying certain elective hospital procedures.
“Fresenius Kabi works closely with the FDA Office of Drug Shortages to help mitigate shortages and has a long-standing relationship with Premier. We are pleased to work with Premier and ProvideGx on this important initiative for providers and patients,” said John Ducker, President and CEO of Fresenius Kabi USA. “Collaboration by each party within the supply chain of care is essential to solving the issue of drug shortages in America for all healthcare providers and patients.”
Fully funded by Premier, ProvideGx is charged with identifying safe, high-quality supply sources for drugs that are or may be on the national drug shortage list. ProvideGx is the next step in Premier’s ongoing effort to help facilitate the availability of hundreds of high-quality products, including drugs for which there may be supply challenges. Through the subsidiary, Premier is working with a robust pipeline of manufacturers to identify sources of product supply, and to explore and implement solutions to address specific market needs.
Thiamine is a nutritional supplement used to treat or prevent vitamin B1 deficiency. Diphenhydramine is an antihistamine used to treat life-threatening allergic reactions. Lidocaine, hydromorphone and morphine sulfate are analgesics administered under the supervision of a healthcare provider during surgeries, traumas, burns and other invasive procedures.
Guided by Premier’s member health systems and its National Pharmacy Committee, representing more than 1,000 hospitals across the nation, ProvideGx seeks to introduce additional drugs from a target list of more than 60 shortage products in months to come, beginning with sterile generic injectables.
The financial terms of Premier’s agreement with Fresenius Kabi were not disclosed. Revenues from this agreement are not expected to materially impact Premier FY 2019 results.
The products included in this agreement, which have been subject to shortages, will be available for purchase by any health system or healthcare provider at competitive price points.
Matters discussed in this release that are not statements of historical or current facts, are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements may involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of Premier to be materially different from historical results or from any future results or projections expressed or implied by such forward-looking statements. Accordingly, readers should not place undue reliance on any forward-looking statements. In addition to statements that explicitly describe such risks and uncertainties, readers are urged to consider statements in the conditional or future tenses or that include terms such as “believes,” “belief,” “expects,” “estimates,” “intends,” “anticipates” or “plans” to be uncertain and forward-looking. Forward-looking statements may include comments as to Premier’s beliefs and expectations as to future events and trends affecting its business and are necessarily subject to uncertainties, many of which are outside Premier’s control. More information on potential factors that could affect Premier’s financial results is included from time to time in the “Forward-Looking Statements,” “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” sections of Premier’s periodic and current filings with the SEC and available on Premier’s website at investors.premierinc.com. Forward-looking statements speak only as of the date they are made. Premier undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise that occur after that date.