A National Problem, a Virginia Solution: Civica Invests in Essential Medicines Partnership in Petersburg

The COVID-19 pandemic exposed major flaws in the national medical supply chain. Often, a single medication must move through multiple countries, undergo up to a 100 different steps, and pass through different distributors and manufacturers before it is ready. Each risks interruption and delay.

Enter Virginia. 

In 2020, a new partnership began taking shape in the Commonwealth, with Civica as a key partner. Civica is a nonprofit generic drug company committed to addressing the problem of chronic generic drug shortages and high prices. 

The Virginia Solution

Civica and the Medicines for All Institute (M4ALL) at Virginia Commonwealth University’s (VCU) College of Engineering had long been concerned about the pharmaceutical supply chain, but COVID gave the issue renewed urgency. 

This effort resulted in the formation of the Phlow Corporation, which soon secured a $354 million contract from the Biomedical Advanced Research and Development Authority to manufacture essential medicines for the Strategic National Stockpile and start the first Strategic Active Pharmaceutical Ingredient Reserve to provide a long-term supply of key ingredients.

Civica is also joining Phlow, M4All, and numerous other corporate, government, and educational partners as members of the Alliance for Building Better Medicine, a regional coalition started with a Build Back Better Regional Challenge grant from the U.S. Economic Development Administration and formed with the goal of creating a reliable supply of safe, high-quality, affordable medicines in the United States.

Civica Points to Petersburg

As a strategic partner in this initiative, Civica established a 120,000-sq.-ft., state-of-the-art, $125 million facility in the City of Petersburg, manufacturing sterile, injectable drugs and distributing insulins at significantly lower prices. The Civica plant also converts active pharmaceutical ingredients from Phlow into vials and syringes for hospital use.

This Petersburg base offers a strategic location close to interstates 85 and 95, within a manageable drive of major population centers on the East Coast. Access to The Port of Virginia was also a deciding factor, along with Virginia’s top-notch workforce, educational institutions, quality of life, and business climate. 

With this investment, Civica is building on its long-term commitment to patients – and to Virginia. This lab will support a skilled and highly trained workforce who will ensure Civica’s affordable insulin as well as other essential medicines meet the highest standards.

Ned McCoy

President and CEO, Civica Rx

High-Tech Facilities for a High-Need World

Civica’s facility has three manufacturing bays, with the ability to fill 90 million medicine vials and make up to 50 million pre-filled syringes annually, now employing about 190 workers. Civica began producing insulin there in 2022, which first hit the market in 2024.

Civica also is planning a new laboratory testing facility in nearby Chesterfield County. The 55,000-square-foot facility will support the Petersburg operation through quality testing and development of new products, creating 51 new jobs. It will also host a scale-up manufacturing facility operated by M4ALL, providing additional employment.

A Workforce Jump-Start

Support is being provided through the Virginia Talent Accelerator Program, a workforce initiative created by VEDP in collaboration with the Virginia Community College System that delivers no-cost recruitment and training services, customized to a company’s unique products, processes, equipment, standards, and culture.

This investment in Petersburg helps shore up a shaky domestic supply chain, provides the efficacy of continuous manufacturing, supports the local economy, and creates a new model for American pharmaceutical manufacturing in Virginia.