The state of California and a generic drug manufacturer have entered a 10-year partnership to produce affordable, state-branded insulin that they hope will rival longtime producers and push down prices.
California Gov. Gavin Newsom announces a partnership with Civica Rx, a non-for-profit pharmaceutical company intended to manufacture insulin for the State of California's CalRx Biosimilar Insulin Initiative, at a dramatically lower cost, during a visit to a Kaiser Permanente warehouse in Downey, Calif., on Saturday, March 18, 2023.
Democratic Gov. Gavin Newsom said he hoped California’s emergence as an insulin-maker would prompt prices to collapse. Research has shown that prices for the drug have“We are intent to make this about market disruption,” Newsom said at a ceremony announcing the pact at a pharmaceutical warehouse near Los Angeles. He called it “a game changer” for 8 million Americans who use insulin to treat diabetes.have yet to locate a California-based manufacturing facility.
Anthony Wright, executive director of Health Access California, a statewide consumer health care advocacy group, welcomed Newsom's announcement, saying efforts by California and others to develop a competing generic are likely a factor in getting insulin manufacturers to cut their prices.“The work to develop a generic, get FDA approval and set up manufacturing will take real time,” Wright said in an email.
If for whatever reason the deal didn't work out to the state's benefit, “there’s all kinds of provisions that would allow us to ... pull out,” he said.
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