Eleven health systems and group purchasing organization Premier have acquired a minority stake in Exela Pharma Sciences to support domestic production of pharmaceutical products, Premier said Sept. 8.
The health systems each signed multiyear commitments to buy a portion of their pharmaceutical products from Exela, based in Lenoir, N.C., through Premier's GPO. The systems are expected to receive an uninterrupted supply of 19 pharmaceutical products, including several generic injectable drugs that frequently appear on the FDA's shortage list.
The health systems participating in the deal are:
- Baystate Health (Springfield, Mass.)
- Genesis Health System (Davenport, Iowa)
- Henry Ford Health System (Detroit, Mich.)
- McLaren Health Care (Grand Blanc, Mich.)
- Memorial Healthcare System (Hollywood, Fla.)
- OSF HealthCare (Peoria, Ill.)
- Riverside Health System (Newport News, Va.)
- Saint Francis Health System (Tulsa, Okla.)
- Texas Health Resources (Arlington, Texas)
- Universal Health Services (King of Prussia, Pa.)
One system asked not to be named, a Premier spokesperson told Becker's.
Drug shortages have cost the U.S. about $230 million in additional annual drug costs for more than a decade, Premier said in a news release.
"With this investment, we are committing to support the domestic production of vital medicines for our members and the market ─ and to bring much-needed solutions to help eliminate drug shortages," Michael Alkire, president and CEO of Premier, said in the news release.
The financial terms of the deal were not disclosed.
Read the full news release here.