Generic drugs

Blues plans invest in new generic drug company

A pharmacist technician stocks drugs.
A new company will sell generic medicines at cost. Photo: George Frey/Getty Images

Eighteen Blue Cross Blue Shield insurers are investing a combined $55 million to build a new generic drug company as a subsidiary of the nonprofit Civica Rx. The firm will focus on manufacturing generics people get at the pharmacy.

Between the lines: Civica and the Blues aren't disclosing which drugs they want to make, so it's unclear how much effect this company will have. But the investment highlights the broad desire to counter generic companies that are accused of price-gouging.

When a generic drug doesn't do much to lower costs for patients

Variety of open pill bottles
Photo: Shana Novak/Getty Images

A generic version of Copaxone, one of the most popular drugs to treat multiple sclerosis, didn't do much to lower costs for patients, NPR reports.

The big picture: MS drugs cost $70,000 a year, on average, and some prices have increased to five times what they were when the drugs were first approved by the FDA.