Sandoz Inc, a Germany-based company that develops, manufactures, and distributes generic pharmaceutical products, has signed a long-term agreement with Civica Rx, a United States-based non-profit organisation that seeks to make quality generic medicines available and affordable to its hospital members, it was reported on Tuesday.

The contract has been signed to produce and provide critical injectable generic medicines, in order to decrease supply shortages in US hospitals and ensure that acute care settings can deliver optimal patient care.

According to the five-year contract, Sandoz Inc is to provide six injectable medicines, including antibiotics, acid reducers, blood thinners, blood pressure regulators and medicines required in the operating room to Civica's hospitals, which to date include more than 50 health systems, representing 1,200 hospitals and more than 30% of all licensed US hospital beds.

Sandoz is likely to start shipping to Civica later this year.