Gov. Gavin Newsom announced a new $50-million contract with the nonprofit generic drugmaker Civica to produce insulin under the state’s own label du

Newsom announces $50-million contract to make California’s own brand of insulin

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2023-03-19 16:30:10

Gov. Gavin Newsom announced a new $50-million contract with the nonprofit generic drugmaker Civica to produce insulin under the state’s own label during a news conference Saturday in Downey.

Newsom originally declared his intent to produce generic drugs three years ago in an attempt to lower the cost of pharmaceutical products for Californians who struggle to afford often life-saving medication. Pending approval by the U.S. Food and Drug Administration, the deal with Civica would provide the first pharmaceutical product made under the CalRX brand of generic drugs.

Under the deal, a 10-milliliter vial — normally costing $300 — would be made available for the same $30 it costs the state to manufacture and distribute the drug, according to the governor’s office. Newsom’s office said that as a result of such sharply reduced prices, patients who pay out of pocket for insulin would save between $2,000 and $4,000 annually.

The governor and other officials touted that doing so would lower costs across the board, not just for the consumer ultimately picking up the drug. That makes it different, Newsom said, than the recent announcements by pharmaceutical companies about reducing their insulin prices.