LOS ANGELES — LOS ANGELES (AP) — Gov. Gavin Newsom said Thursday that California will begin selling affordable private-label insulin on Jan. 1. almost three years after he first announced partnership to sell government-branded generic drugs at lower prices.
But California won't be the only state offering cheaper insulin. Non-profit organization Civica said it will also distribute its cost-effective diabetes medications to pharmacies across the country.
Beginning in the new year, insulin pens will be available in California under the CalRx brand for $11 per pen or a maximum of $55 for a pack of five, Sivica said.
“You don't need a new prescription. You just switch to biosimilar insulin, which is now available,” Newsom said at a news conference in Los Angeles. “It’s access based on affordability.”
The state entered into a 10-year agreement with Civica and Biocon Biologics. early 2023. Officials said at the time that they hoped California's emergence as an insulin producer would lead to falling prices. Studies have shown that the cost of the drug more than three times in the last couple of decades.
The new pens will be interchangeable with glargine, a generic alternative to more expensive once-daily injections that regulate blood sugar. By comparison, the equivalent of five packages of Eli Lilly's Rezvoglar sells for more than $88 at pharmacies, but consumers may pay a different price depending on their insurance, according to data compiled by the governor's office.
According to the American Diabetes Association, approximately 38 million Americans and approximately 3.5 million Californians have diabetes.
Chris Noble, organizing director of Health Access California, a statewide consumer advocacy group, welcomed Newsom's announcement, saying efforts by California and others to develop a competing generic drug would bring relief to patients who have faced soaring drug prices in recent years.
“California consumers need help now, so health advocates are relieved to see CalRx moving quickly to lower insulin costs for Californians while continuing to seek other needed solutions to lower prescription drug costs,” Noble said in a statement Thursday. “We hope to see additional rapid-acting insulins included in the CalRx portfolio to ensure insulin-dependent patients can meet all of their insulin needs.”
There may be risks. Government analysts warned that California's entry into the market could prompt other manufacturers to reduce the availability of their drugs, a potential unintended consequence.
State legislators approved $100 million for the project in 2022, with $50 million dedicated to developing three types of insulin and the rest to invest in a manufacturing facility.
The proposed program could save many patients between $2,000 and $4,000 a year, according to 2023 government documents. In addition, lower costs could lead to significant savings as the government purchases the product each year for millions of people on their government-funded health plans.
The state is also exploring the possibility of bringing other drugs to market. In April, Newsom announced that the state would sell overdose reversal medications. Naloxone. The drug, available as a nasal spray and injectable form, is considered a key tool in combating the nationwide overdose crisis.
