Gov. Gavin Newsom (D-CA) announced Friday that his state will begin manufacturing and distributing its own low-cost insulin to provide diabetics a reprieve from paying prohibitive prices for the life-sustaining medication.
Newsom allocated $100 million in the state budget he recently signed for 2022-2023 “so we can contract to make our own insulin at a cheaper price close to at cost and to make it available to all.”
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“Nothing — nothing — epitomizes market failures more than the cost of insulin,” Newsom said. “California is now taking matters into our own hands.”
California is going to make its own insulin.
It’s simple. People should not go into debt to get life-saving medication. pic.twitter.com/yB4mpGjtQO
— Gavin Newsom (@GavinNewsom) July 7, 2022
The first $50 million will go toward the development of low-cost insulin products, and an additional $50 million will go toward building a California-based insulin manufacturing facility. Newsom touted the plan’s guarantee to “provide new high paying jobs and a stronger supply chain for the drug.”
Details, such as time frames for producing and distributing the insulin, were scant. Newsom also did not address possible conflict with the Food and Drug Administration, which is required to inspect all drug manufacturing facilities as well as review exhaustive clinical data to prove it is both safe and effective.
Three companies — Eli Lilly, Novo Nordisk, and Sanofi Aventis — dominate the market for insulin. The logistical and regulatory barriers for a private company to enter the market are high.
The monthly cost of maintaining insulin supply is prohibitive for many diabetics. List prices for insulin have soared in recent years, with the average retail price for insulin rising 54% from 2014 to 2019, according to GoodRx. Single vials of insulin range in cost from $25 to $400, and diabetics often need two or three each month. A pack of five insulin pens can set diabetics back as much as $700.
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There have been reports of many people rationing their limited supplies as a cost-saving measure, a highly dangerous practice that could lead to diabetic ketoacidosis, a condition that occurs when blood sugar gets so high that blood becomes acidic, cells dehydrate, and a person’s body stops functioning.
