Sep 2, 2020 - Health

California could become first state to produce generic drugs

Marisa Fernandez

Gavin newsom speaking to press — Gov. Gavin Newsom has until Sept. 30 to sign or veto the measure. Photo: Agustin Paullier/AFP via Getty Images

California's state legislature approved a measure this week that would allow it to become the first state to develop its own line of generic drugs, including insulin, to tackle rising pharmaceutical prices.

Why it matters: If passed, the motion would put California in direct competition with major generic and brand-name drug manufacturers.

Still, it could take years for the state to successfully bring products to the market.

How it works: Taxpayers would pay for the $1 million to $2 million in startup funding costs, in addition to staff costs, state fiscal analysis shows.

The bill specifically would require the state to make “at least one form of insulin, provided that a viable pathway for manufacturing a more affordable form of insulin exists at a price that results in savings.”
No other specifics of which drugs would be secured by the state were included.

What's next: Gov. Gavin Newsom (D) will have until Sept. 30 to sign or veto the measure.

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California could become first state to produce generic drugs

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