Thursday, November 9, 2023

A New Way for Nonprofits to Fix Broken Markets?: Civica Rx

Download (21)KSL TV recently reported "Utah nonprofit pharmaceutical company is fixing the market, producing 80 drugs." The company is Civica Rx. Launched five years ago, its stated purpose is "to reduce and prevent drug shortages and the price spikes that can accompany them" by "mak[ing] quality generic medicines accessible and affordable to everyone." As detailed in its Form 990 filings, it is tax-exempt under section 501(c)(4) and was approaching $100 million in gross revenue in 2021. Does its emergence help confirm law and economics theories about the role of nonprofits when there are apparent market failures? It would certainly be an interesting case study to explore. 

Lloyd Mayer

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