Two new nonprofit pharmaceutical companies, Civica Rx and Harm Reduction Therapeutics, have declared they want to help patients see more money in their pockets by manufacturing low-cost generic drugs. With public trust in for-profit pharmas at an all-time low, especially when it comes to their relationships with a special brand of self-serving philanthropy, they’d better be transparent about it. Even with the field in experimental startup mode, there is a good deal of variety in some of the larger efforts.

Civica Rx, a new nonprofit drug company based in Utah, is partnering with seven of the largest US hospital systems: Intermountain Healthcare, Catholic Health Initiatives, HCA Healthcare, Mayo Clinic, Providence St. Joseph Health, SSM Health, and Trinity Health. The coalition is investing in Civica’s ability to find creative solutions to tackle the devastating effects of skyrocketing generic drug prices and a shortage of essential medications.

Civica’s business model will rely on long-term contracts with member health organizations who commit to buying a fixed portion of their drug volumes, hoping to create a competitive market to bolster their bottom line. The new venture will be governed by the seven healthcare systems and about 500 US hospitals. Civica has raised $100 million from member healthcare organizations.

Read more at Non-Profit Quarterly