ProvideGx, a subsidiary of Premier, will collaborate with Fresenius Kabi to help mitigate national shortages of five generic injectable medications.
The two companies will boost production of injectable thiamine, lidocaine, diphenhydramine, hydromorphone and morphine sulfate.
ProvideGx was established by Premier in January to address supply shortages plaguing health systems across the U.S.
The company plans to work with generic drug manufacturers, co-fund development of affordable products and secure contracts for active pharmaceutical ingredients to ensure supply demands are met. ProvideGx will begin with drugs from a target list of more than 60 that are in short supply.
The financial terms of the collaboration with Fresenius were not disclosed.