Premier Inc. (NASDAQ: PINC), through its ProvideGx® program, has partnered with Somerset Pharma, LLC., to supply sulfamethoxazole/trimethoprim, an antibiotic combination used to treat respiratory infections, a common complication associated with COVID-19.
Although sulfamethoxazole/trimethoprim is not in active shortage today, it is a drug category that lacks competition, which can make it vulnerable to price increases and potential shortages. Somerset is a new market entrant for this drug, working to creating a viable, competitive alternative and second source of supply.
"Through our collaboration with Somerset, we are bringing much needed competition to the market, helping to ensure a stable and predictable long-term price point for our members," said Premier President Michael J. Alkire. "At the same time, this deal provides a long-term contract to Somerset, creating predictable demand for years into the future. ProvideGx is a totally unique approach in the market, creating a winning recipe that is working to create a healthier, more diversified pharmaceutical market."
Established in 2019, Somerset Pharma is a privately owned, U.S.-based pharmaceutical company. Together with privately owned, U.S.-based Somerset Therapeutics, established in 2015, Somerset develops, manufactures and markets generic injectable and ophthalmic drugs. The company markets 22 products today, with 25 more awaiting approval.
To help meet a potential future surge in demand, Somerset Pharma, LLC will continue to mitigate risk in all aspects of production, including supply of active pharmaceutical ingredients and other key manufacturing components to ensure availability of products to Premier members on an ongoing basis.
Guided by health systems with more than 1,600 hospitals across the nation, Premier’s ProvideGx program creates long-term committed buying contracts that provide participating manufacturers with the surety needed to increase production or move into new markets. Premier’s programs, including ProvideGx, currently provide members access to more than 150 drugs that are or have been recently designated as shortage drugs, with a pipeline of more than 50 additional drugs. The program has also ensured an adequate safety stock of medicines and has successfully protected supply, even as demand surged more than 150 percent during the COVID-19 pandemic.
"Somerset Pharma recognizes the importance of ensuring availability of quality critical care medicines for hospitals and medical institutions, goals that are all the more important during times of unpredictability and pandemic," said Dr. Veerappan Subramanian, President and CEO of Somerset Pharma. "As a company founded on the basis of science and quality, the need to ensure a continuous supply of products is built into the culture of Somerset Pharma."
"As Somerset and Premier began negotiating and exploring opportunities to work together, it became clear that it would be possible to execute a win-win strategy," said Kevin M. Congdon, Somerset Pharma’s Senior Director of Institutional Sales. "Providing ProvideGx members with critical medication for patients through a long-term partnership will be a model to follow into the future."
The financial terms of Premier’s agreement with Somerset Pharma were not disclosed.
Matters discussed in this release that are not statements of historical or current facts, are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements may involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of Premier to be materially different from historical results or from any future results or projections expressed or implied by such forward-looking statements. Accordingly, readers should not place undue reliance on any forward-looking statements. In addition to statements that explicitly describe such risks and uncertainties, readers are urged to consider statements in the conditional or future tenses or that include terms such as "believes," "belief," "expects," "estimates," "intends," "anticipates" or "plans" to be uncertain and forward-looking. Forward-looking statements may include comments as to Premier’s beliefs and expectations as to future events and trends affecting its business and are necessarily subject to uncertainties, many of which are outside Premier’s control. More information on potential factors that could affect Premier’s financial results is included from time to time in the "Forward-Looking Statements," "Risk Factors" and "Management’s Discussion and Analysis of Financial Condition and Results of Operations" sections of Premier’s periodic and current filings with the SEC and available on Premier’s website at investors.premierinc.com. Forward-looking statements speak only as of the date they are made. Premier undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise that occur after that date.
About Premier Inc.
Premier Inc. (NASDAQ: PINC) is a leading healthcare improvement company, uniting an alliance of more than 4,000 U.S. hospitals and health systems and approximately 175,000 other providers and organizations to transform healthcare. With integrated data and analytics, collaboratives, supply chain solutions, and consulting and other services, Premier enables better care and outcomes at a lower cost. Premier plays a critical role in the rapidly evolving healthcare industry, collaborating with members to co-develop long-term innovations that reinvent and improve the way care is delivered to patients nationwide. Headquartered in Charlotte, N.C., Premier is passionate about transforming American healthcare. Please visit Premier’s news and investor sites on www.premierinc.com; as well as Twitter, Facebook, LinkedIn, YouTube, Instagram and Premier’s blog for more information about the company.
Amanda Forster, Public_Relations@PremierInc.com