Baxter and Premier’s ProvideGx™ Subsidiary Collaborate to Address Drug Shortages
ProvideGx, LLC, a subsidiary of Premier Inc. (NASDAQ: PINC), a healthcare improvement company developing a more stable and reliable supply chain for generic drugs in short supply, is collaborating with Baxter Healthcare Corporation to make additional generic drugs available for purchase through Premier’s group purchasing organization.
Drug shortages have been on the rise for several years, with an estimated 210 drugs currently at risk or not readily available for U.S. hospitals, according to the national database maintained by the American Society of Health System Pharmacists (ASHP). 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 surgeries.
“Our agreement with Baxter is the latest milestone in Premier’s long-standing, multi-year role in working to eliminate drug shortages,” said Michael J. Alkire, Chief Operating Officer at Premier. “Premier is committed to aggregating provider demand for products and creating a predictable sales channel for suppliers. This agreement allows Premier to work with Baxter on mitigating shortages that have plagued the market for years, marking the 92nd shortage product by the National Drug Code that we can now supply on a reliable basis.”
Premier and Baxter are collaborating to supply metoprolol injection, a life-saving blood pressure medication often used to treat patients experiencing hypertensive emergencies, such as heart attacks. Baxter is adding metoprolol injection to its growing portfolio of generic medicines that are essential to hospital care. Metoprolol, which has been subject to shortages since 2016, will be available for purchase by any health system or healthcare provider at competitive price points.
Fully funded by Premier, ProvideGx is charged with identifying safe, high-quality supply sources for drugs on the national drug shortage list. ProvideGx is the next step in Premier’s ongoing effort to reliably supply member health systems and others with more than 250 high-quality products, including shortage drugs. Through the subsidiary, Premier is working with a robust pipeline of manufacturers to identify a supply of shortage products, explore solutions to address specific market needs and secure guaranteed supply contracts for active pharmaceutical ingredients to promote a continuous supply.
“We are expanding our portfolio of generic injectable medicines at competitive cost points for hospitals, and are proud to work with Premier, a long-standing partner and leader in solving drug shortages,” said Robert Felicelli, President, Pharmaceuticals, Baxter. “Combining our leadership in drug delivery technology and supply chain strength with Premier’s data and vast purchasing network will help us better understand demand and create a sustainable supply of this essential medicine.”
Guided by Premier’s member health systems and National Pharmacy Committee, representing more than 1,000 hospitals across the nation, ProvideGx plans to introduce drugs from a target list of more than 60 shortage products in months to come, beginning with sterile generic injectables, a category that is particularly susceptible to shortages.
“With their deep expertise, data-driven insights, and efficient, price-competitive strategy, Premier continues to be the national leader in reliably sourcing shortage drugs,” said Lee H. Perlman, President of GNYHA Ventures, Inc., the management company of Premier’s group purchasing partner Acurity, Inc. “Drug shortages are an unfortunate reality, and each one creates new financial and patient care challenges. We strongly support the commitment of Premier and Baxter to not only access drugs in shortage today, but also head off potential future shortages.”
The financial terms of Premier’s deal with Baxter were not disclosed. Revenues from the partnership are not expected to materially impact Premier FY 2019 results. Baxter previously received FDA approval for metoprolol injection.
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.
About Premier Inc.
Premier Inc. (NASDAQ: PINC) is a leading healthcare improvement company, uniting an alliance of more than 4,000 U.S. hospitals and health systems and approximately 165,000 other providers and organizations to transform healthcare. With integrated data and analytics, collaboratives, supply chain solutions, and consulting and other services, Premier enables better care and outcomes at a lower cost. Premier plays a critical role in the rapidly evolving healthcare industry, collaborating with members to co-develop long-term innovations that reinvent and improve the way care is delivered to patients nationwide. Headquartered in Charlotte, N.C., Premier is passionate about transforming American healthcare. Please visit Premier’s news and investor sites on www.premierinc.com; as well as Twitter, Facebook, LinkedIn, Instagram and Premier’s blog for more information about the company.
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