Civica announces plans to manufacture generic drugs in commonwealth - State of Reform - State of Reform

Shawna De La Rosa | Jan 21, 2021

The pharmaceutical firm Civica will invest $124.5 million to establish its first in-house pharmaceutical manufacturing operation in the Petersburg, a venture that will create 186 jobs. The nonprofit generic drug company launched in 2018 to address the problem of chronic generic drug shortages and high prices.

It is a partner in the government-funded Phlow Corporation, Medicines for All Institute and AMPAC Fine Chemicals affiliation. Phlow executed a $354 million Medicines for All Institute contract with the U.S. Biomedical Advanced Research and Development Authority to produce essential medications using advanced manufacturing processes. Medicines for All Institute is based out of the College of Engineering at Virginia Commonwealth University.

The plans call for Civica to construct a 120,000-square-foot facility on Normandy Drive adjacent to Phlow’s future operation and AMPAC’s facility. The plant will manufacturer vials and syringes of injectable medicines used for COVID-19 patient care, emergency room surgeries and the treatment of serious infection and hypertension. The product will be shipped across the country.

Eric Edwards, co-founder, president and CEO of Phlow Corporation, said there has been a shortage of many essential medicines.

“The COVID-19 pandemic has further revealed significant vulnerabilities in our U.S. medical supply chain,” Edwards said. “We are thrilled to be part of a partnership … to develop an advanced pharmaceutical manufacturing campus in Central Virginia that will provide a comprehensive end-to-end solution.”

The goal, Edwards said, is for all Americans to have access to essential medicines.

This is also a step towards the goal of producing 100% of all essential medicines in the U.S., said Dr. Frank Gupton, co-founder of Phlow Corporpation and chair of the Department of Chemical and Life Science Engineering at VCU. He is also CEO of the Medicines for All Institute.

Generic drug shortages in the U.S. has become a major issue, costing hundreds of the millions of dollars. In a report , the U.S. Pharmacist estimates health systems spend approximately $200 million in direct costs and between $216 million and $359 million in indirect costs to address drug shortages.

“With COVID-19 on the rise again in Virginia, it is important that we have companies such as Civica producing much-needed pharmaceuticals,” said Sen. Joseph Morrissey.

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