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Governor Gavin Newsom said on Thursday that California It will begin selling affordable insulin under its own label on Jan. 1, nearly three years after first announcing a partnership to sell state-branded generic drugs at lower prices.
But California won’t be the only state that will make insulin available at a lower cost. Nonprofit Civica said it will also distribute its affordable diabetes medicine to pharmacies across the country. California began a partnership with Civica for its “CalRx” brand of insulin in 2023 and committed $50 million to its development, the company said.
Insulin pens will be available starting in the new year at a recommended price of $11 per pen, or a maximum of $55 for a five-pack, Civica said.
“You don’t need a new prescription,” Newsom said at a news conference. los angeles“It’s access based on affordability.”
It is part of California’s effort to lower the cost of prescription drugs by offering generic drugs as cheaper alternatives. Newsom announced in April that the state would sell the overdose drug naloxone. The drug, available as a nasal spray and injection, is considered a vital tool in the fight against the overdose crisis nationwide.
For insulin development, the state signed a 10-year agreement with Civica and Biocon Biologics beginning in 2023. Officials then said they expected California’s emergence as an insulin producer to drive down prices.
The new pens will be interchangeable with glargine, a common alternative to more expensive once-a-day injections that control blood sugar. By comparison, the equivalent of a five-pack Eli LillyRezvoglar sells to pharmacies for more than $88, but consumers may pay a different price depending on their insurance, according to data compiled by the governor’s office.
about 38 million Americans —And according to the American Diabetes Association, about 3.5 million Californians have diabetes.
Chris Noble, organizing director of Health Access California, a statewide consumer health care advocacy group, welcomed Newsom’s announcement, saying efforts by California and others to develop competitive generics will provide relief to patients who have seen drug prices rise in recent years.
“California consumers need relief now, so health advocates are relieved to see CalRx moving quickly to lower insulin costs for Californians, while pursuing other essential prescription drug cost solutions,” Noble said in a statement Thursday.
There may be risks. State analysts warn that California’s entry into the market could prompt other manufacturers to reduce the availability of their drugs, a potentially unintended consequence.
State lawmakers approved $100 million for the project in 2022, with $50 million dedicated to developing three types of insulin and the rest set aside to invest in a manufacturing facility.
According to state documents by 2023, the proposed program could save many patients between $2,000 and $4,000 per year. Furthermore, the lower costs may result in substantial savings as the state purchases the product for millions of people on publicly funded health plans each year.