California will begin selling its own brand of affordable insulin starting January 1, 2026, Governor Gavin Newsom announced on Thursday. The move comes nearly three years after the state first revealed its plan to partner with manufacturers to produce and distribute lower-cost generic drugs.
The state’s initiative, known as “CalRx,” is a partnership with the nonprofit Civica, which will also make its affordable insulin available to pharmacies across the United States. California allocated $50 million toward the development of this medication. Insulin pens will be offered at a recommended price of $11 per pen, or $55 for a five-pack, according to Civica.
At a news conference in Los Angeles, Newsom stated, “You don’t need a new prescription. It’s access on the basis of affordability.”
This effort is part of a broader strategy by California to reduce prescription drug costs by providing generic alternatives. Earlier this year, Newsom announced that the state would also begin selling Naloxone, a medication used to reverse opioid overdoses.
The state’s agreement with Civica and Biocon Biologics is set for ten years and began in early 2023. Officials hope that California’s entry into the insulin market will drive down prices for consumers. The new insulin pens will be interchangeable with glargine, a generic version of a commonly used once-daily injection. For comparison, a five-pack of Eli Lilly’s Rezvoglar is priced at over $88 for pharmacies, though the final cost to consumers may vary depending on insurance.
According to the American Diabetes Association, about 38 million Americans have diabetes, including approximately 3.5 million Californians.
Chris Noble, organizing director of Health Access California, commented on the announcement: “California consumers need relief now, so health advocates are relieved to see CalRx moving quickly to lower insulin costs for the people of California while continuing to pursue other needed prescription drug cost solutions.”
However, state analysts have cautioned that California’s move could lead other manufacturers to reduce the availability of their drugs. In 2022, state lawmakers approved $100 million for the project, with half allocated for developing three types of insulin and the remainder intended for investment in a manufacturing facility.
