Newsom announces 50 million contract to manufacture insulin in California

Newsom announces $50 million contract to manufacture insulin in California

The high price of insulin has forced diabetics to ration the drug.

Photo: Spencer Platt/Getty Images

California will make more affordable insulin in partnership with nonprofit generic drug maker Civica Rx, the governor announced Gavin Newsom on Saturday during a visit to southern California.

The Asociation will provide insulin to Californians at $30 per 10 millilitersthe governor said during a stop at a Kaiser warehouse in Downey.

The visit is part of a statewide tour by Newsom to highlight his policies, an alternative road trip to Sacramento, the San Francisco Bay Area, Los Angeles and San Diego through Sunday, instead of the traditional speech. about the state of California from the governor.

The 10-year partnership will be administered through Cal Rx. Manufacturing is expected to start later this year with deliveries next year, Newsom said.

As part of the $50 million contract, Civica Rx will produce three insulins: glargine, lispro and aspart that will be available in vials and pre-filled pens under the Cal Rx label.

In addition to the new insulin contract, Newsom also announced that California would seek to manufacture its own naloxone, also known by the brand name Narcan. The drug can reverse the effects of opioids such as fentanyl and heroin and help restore a person’s normal breathing.

Although insulin was discovered more than a century ago and costs little to produce, brand name insulin often sells for about $300 per vial. The high cost has forced many people with diabetes to ration or skip doses of medications, which help the body control blood sugar.

Newsom’s office said that as a result of such low prices, patients who pay out-of-pocket for insulin would save between $2,000 and $4,000 per year.

“People should not be forced into debt to obtain life-saving prescriptions,” Newsom said in the statement. “Through CalRx, Californians will have access to some of the most affordable insulin available, helping them save thousands each year.”

Insulin has become the symbol of the rising cost of many prescription drugs. Newsom’s announcement follows several insulin manufacturers that have announced their own caps on the price of insulin, including Sanofi, Eli Lilly and Novo Nordisk.

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