California Gov. Gavin Newsom (D) announced Thursday that cheaper, state-made insulin for diabetics, an endeavor he unveiled more than three years ago, is set to hit shelves in January.
A five-pack of CalRx-branded, 3 mL insulin pens will be sold to pharmacies for $45 total and cost patients a maximum of $55 a pack. Newsom’s office compared the price to that of similar insulin products, which have a wholesale price ranging from around $90 to more than $400 for the same amount of medication.
“No Californian should ever have to ration insulin or go into debt to stay alive — and I won’t stop until health care costs are crushed for everyone,” the governor said in a statement Thursday.
California is the first state to circumvent Big Pharma by producing its own insulin, which around 40 million Americans rely on to manage their diabetes.
“California didn’t wait for the pharmaceutical industry to do the right thing — we took matters into our own hands,” Newsom said.
The state’s Health and Human Services Agency Secretary Kim Johnson praised the development as moving California closer to a place “where no one is forced to choose between their health and their financial stability.”
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But Californians won’t be the only ones able to access cheaper insulin. Civica Rx, the nonprofit generic drugmaker that the state partnered with on the project, says it will also distribute the affordable diabetes medicine to pharmacies nationwide under its own branding through a partnership with Biocon Biologics.
When Newsom announced the effort in 2022, he noted that out-of-pocket insulin prices hovered around $300 to $500 a month for some people. Though some federal policy has helped lower the cost for many patients, prices have soared for others who get their insulin through low-income health clinics.
The insulin coming to market in January 2026 is an unexpected turn of events. In February, a state official told lawmakers the endeavor wasn’t moving “as fast as we had hoped.” A month earlier, industry experts told CalMatters they believed it would be several years until the state-made insulin would be available.
