Advertisement

Gov. Gavin Newsom says California will produce insulin

California Gov. Gavin Newsom announced Thursday that the state will manufacture its own insulin. File Photo by Eric Thayer/UPI | <a href="/News_Photos/lp/c5dcbb070ee054f2a952d0d8ef3802fc/" target="_blank">License Photo</a>
California Gov. Gavin Newsom announced Thursday that the state will manufacture its own insulin. File Photo by Eric Thayer/UPI | License Photo

July 7 (UPI) -- California Gov. Gavin Newsom announced Thursday that the state will begin producing its own insulin in an effort to reduce the cost of the life-saving medication.

Newsom, a Democrat, made the announcement in a video message explaining he approved the move June 30 when he signed off on a budget that invests $100 million into the plan for the state to develop and manufacture low-cost insulin to increase its availability and affordability in California.

Advertisement

"Nothing epitomizes market failures more than the cost of insulin. Many Americans experience out-of-pocket costs anywhere from $300 to $500 per month for this life-saving drug," Newsom said. "California is now taking matters into our own hands."

Newsom said $50 million from the budget will go toward the development of the insulin products with an additional $50 million being earmarked for a California insulin manufacturing facility.

Advertisement

The plan, he said, is to offer insulin to residents at near cost.

"In California, we know people should not go into debt to receive life-saving medication," he said.

RELATED Cancer drug sabizabulin may reduce risk of death from COVID-19

The move comes more than three years since Newsom signed an executive order on his first day in office that he described Thursday as having put the state on the path toward manufacturing its own drugs.

In January 2020, he announced the state would work toward creating its own prescription drug label.

The announcement also comes as lawmakers seek to curb the cost of insulin, with Senate Democrats on Wednesday unveiling a plan to lower drug prices.

In April, Human Rights Watch published a report analyzing the price tag of insulin produced by Eli Lilly, Novo Nordisk and Sanofi -- three most dominate producers of insulin in the United States -- and found that they have drastically increased by up to 420% since their products were introduced to the market in the late 1990s and early 2000s.

A report from the Health Care Cost Institute shows that the average national price for insulin increased from $344 a month in 2012 to $666 in 2016.

Meanwhile, a study published by the CDC states the cost of insulin is forcing more than two-thirds of those who suffer from diabetes or hypertension who rely on the life-saving medicine to either skip or delay taking the drug.

Advertisement

Latest Headlines

Advertisement
Advertisement

Follow Us

Advertisement