California to manufacture state insulin brand


Jameson Datoc '23

California’s Governor Newsom recently announced a contract between CalRx and a manufacturer to make insulin accessible to the public at lower costs.

Miranda Hernandez ’24, Staff Reporter

This will forment a change in how insulin is priced, produced, and how insurance companies can pay for medication.

— Simon Rosenberg, medicinal chemist

On March 18, Governor Gavin Newsom announced that CalRx has secured a contract with a manufacturer to make $30 insulin available to everyone who needs it. 

Governor Newsom signed an executive order to bring down the cost of prescription drugs for Californians on his first day in office. His promise to decrease the price and increase accountability and transparency in health care are now becoming reality. 

Governor Newsom stated, “People should not be forced to go into debt to get life saving prescriptions. Through CalRx, Californians will have access to some of the most inexpensive insulin available, helping them save thousands each year.” 

This act is a life changer for all who need it because many people who needed it couldn’t afford it. Many people lost their lives due to this issue and others have been struggling to figure out how they will be able to obtain insulin. 

Michelle Chavero ’24 stated, “With the price of insulin dropping there is more chance of low income people to get the medical care they need. A good amount of diabetic deaths due to lack of insulin are low income people.”

She added, “With people getting the help they need they will live healthy sustainable lives instead of living with diabetes which is a horrible disease.” 

According to The Hill, the process of making insulin is more complex than other medications, which has resulted in little competition and rising consumer prices. 

Insulin companies are concerned with the prices going down by about 90 percent because this change will likely slow the development of competitors in the insulin markets. 

Simon Rosenberg, a Medicinal Chemist stated, “The price cap will undoubtedly create issues for insulin manufacturers that need to maintain a financial benefit to be able to produce the medication.” 

He added, “This will foment a change in how insulin is priced, produced, and how insurance companies can pay for the medication.” 

Governor Newsom took a crucial step in cutting down the cost of insulin and has opened the door to bring down the price of other prescription drugs.