California selected generic drug manufacturer Civica to produce affordable insulin for its residents, Gov. Gavin Newsom announced earlier this month.
Civica will manufacture biosimilar versions of popular short- and long- acting insulins available in vials and pens, according to the drugmaker. The insulin products are expected to retail for no more than $30 per 10 milliliter vial, or $50 for five, 3 milliliter pens under the state’s CalRx label.
California launched the CalRx Biosimilar Insulin Initiative in an effort to lower the cost of insulin by working directly with a contract manufacturer to secure its own supply.
The CalRx insulin products will be produced at Civica’s upcoming 140,000-square-foot facility in Petersburg, Virginia, with the drugmaker planning to “assess options” for the construction of a manufacturing plant in California. The state will invest $50 million in the development, manufacturing and distribution of Civica’s low-cost insulin.
The partnership will bring down insulin costs by about 90%, saving patients who purchase the medicine with cash anywhere from $2,000 to $4,000 a year, according to the state’s release.
“With CalRx, and unlike private companies, we’re getting at the underlying cost – the price is the price, and CalRx will prevent the egregious cost-shifting that happens in traditional pharmaceutical games,” Newsom said in a statement. “It’ll cost us $30 to manufacture and distribute, and that’s how much the consumer can buy it for.”
One in four people who depend on insulin say its cost has impacted their use of the drug, according to the American Diabetes Association. Only 20 states have capped co-payments on insulin and related diabetes supplies — California is not among them.
The state’s insulin initiative is the first step in the Newsom administration’s effort to rein in the cost of prescription drugs. California is now looking to manufacturer other drugs, with the opioid overdose medication Naloxone up next, the governor said during a March 18 press conference.
“We are not stopping here,” Newsom said in his remarks. “We have the opportunity now to explore other manufacturing opportunities, and as a consequence, disrupt more markets, lower more costs for real folks.”
