California has become the first U.S. state to produce and sell its own insulin through the state-run CalRx program, a move aimed at driving down drug costs and expanding access for diabetes patients. Governor Gavin Newsom announced that state-branded insulin products will be available in pharmacies starting January 2026, following manufacturing and distribution partnerships with nonprofit generic drugmaker Civica Rx.
Under the program, pharmacies in California will be able to purchase a five-pen pack of CalRx insulin for $45 and sell it to patients for a suggested retail price of $55. Comparable brand-name insulin analogs currently cost between $89 and $411, according to state health data. CalRx insulin pens will initially include a long-acting insulin (insulin glargine), with two additional formulations expected by late 2026. The program’s pricing strategy is designed to cover production and distribution costs without profit margins.
The launch fulfills a 2020 pledge by Governor Newsom to counter high prescription drug prices by enabling the state to contract for or produce its own essential medicines. Newsom said the effort demonstrates the state’s capacity to “take on monopolistic pricing practices” in the pharmaceutical industry while improving affordability for the estimated 4 million Californians living with diabetes.
The program follows years of public and political scrutiny of insulin prices, which increased nearly tenfold over two decades. California’s release of its state-made insulin could serve as a model for similar initiatives in other states.
Subscribe to our e-Newsletters
Stay up to date with the latest news, articles, and events. Plus, get special offers
from American Pharmaceutical Review – all delivered right to your inbox!
Sign up now!