• Matt Esnayra

Newsom: California will make its own ‘low cost’ insulin

Screengrab: CA Gov office

Gov. Gavin Newsom announced Thursday that California would invest $100 million to produce its own supply of insulin—the drug used by millions of Americans suffering from diabetes.

What’s the plan:

Under Newsom’s plan, $50 million would be used to develop low-cost insulin, and the other $50 million would be directed to create a factory to manufacture the drug.

  • $2.8 million for operational, legal, and administrative costs, per the OC Register.

  • Newsom claims the program “will provide new, high-paying jobs and a stronger supply chain.”

  • The LA Times reported in June that the governor asked state representatives to create California’s own generic drug label called CalRx, with plans to focus on other expensive medications.

  • Newsom thinks a state-ran factory that produces insulin could trim some insurance companies’ cost on the drug by as much as 70%, per the LA Times.

What he’s saying:

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