California Governor Gavin Newsom has announced a 10-year partnership with Civica Rx, a nonprofit drug company, to manufacture insulin at a lower cost for California residents.
The cost of the insulin will be $30 for a 10-milliliter vial and is expected to be available next year. Governor Newsom approved a budget of $100 million for California to make its own insulin in July 2022. The partnership with Civica Rx aims to disrupt the insulin market and provide affordable insulin for Californians.
Major insulin manufacturers, Eli Lilly and Novo Nordisk, have announced price cuts of up to 70% and 75%, respectively, which may have been prompted by the efforts of California and others to develop a competing generic. The proposed program could save patients between $2,000 and $4,000 per year, and it could lead to significant savings for the state because it purchases the product every year for millions of people on its publicly funded health plans.
However, California's entry into the market could prompt other manufacturers to reduce the availability of their drugs. State analysts have warned of this potential unintended consequence. Governor Newsom has assured taxpayers that they would have ample protections, and the state could pull out of the deal if it does not benefit the state.
The state and Civica Rx have yet to locate a manufacturing facility in California, and regulatory approvals will be needed. Competitors could undercut the state product by slashing their prices. The state is also exploring the possibility of bringing other drugs to market, including the overdose medication Naloxone.
In summary, California Governor Gavin Newsom has announced a 10-year partnership with Civica Rx to manufacture insulin at a lower cost for Californians. The partnership aims to disrupt the insulin market and provide affordable insulin for the residents of California. The program could save patients between $2,000 and $4,000 per year and lead to significant savings for the state. However, California's entry into the market could prompt other manufacturers to reduce the availability of their drugs. The state is also exploring the possibility of bringing other drugs to market.
