Sulfamethoxazole/trimethoprim is not in active shortage today, but 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.”
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.
“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.