Civica Rx has announced its plans to build a 120,000-square-foot sterile injectable manufacturing facility in Petersburg, Virginia, potentially creating more than 180 jobs. The new plant represents a $124.5 million investment.  Virginia Gov. Ralph Northam joined Civica Rx in making the announcement.

Civica Rx, based in Lehi, was organized as 501(c)(4) social welfare organization in 2018 to address chronic generic drug shortages and related price spikes in the United States. It was founded by health systems, including Utah’s Intermountain Healthcare and a number of philanthropies.

Building its own state-of-the-art manufacturing operation in the United States has been a part of Civica’s supply strategy since it was founded to address drug shortages and ensure a resilient supply of quality medicines at affordable prices for U.S. patients.

“This is a dream come true for Civica and our hospital partners as we continue to work together to stabilize the supply of essential medicines for patients across the country,” said Martin VanTrieste, president and CEO of Civica. “This Virginia plant and our future employees there will play an instrumental role in preventing the chronic drug shortages that have interrupted hospital operations and put patients at risk for over a decade.”

Civica is a collaborator in the U.S. government-funded partnership with Phlow Corp., Medicines for All Institute at Virginia Commonwealth University and AMPAC Fine Chemicals, which is also located in Petersburg. Through this partnership, Phlow executed a $354 million contract with the U.S. Biomedical Advanced Research and Development Authority (BARDA) to manufacture essential medications from beginning to end, including starting raw ingredients, active pharmaceutical ingredients (APIs) and finished  dosage forms. Civica’s role is to produce finished dosage medications in vials and syringes for patient care in Civica member hospitals and for the U.S. Strategic National Stockpile.

“Too many Americans go without access to key medications due to a broken and unreliable supply chain.  This step today helps to fulfill our bold vision of making the U.S. a Country where every human being has access to the essential medicines necessary to sustain life and conquer disease,” said Dr. Eric Edwards, co-founder, president and CEO of Phlow. “Essential medicines previously in shortage will be more accessible and affordable for decades to come because of the unique partnerships we’ve formed, including this critical partnership with Civica, along with Virginia Commonwealth University’s Medicines for All Institute and AMPAC Fine Chemicals. The medicines we make today will save countless America lives.”

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