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California to Launch State-Branded Affordable Insulin in 2026
SACRAMENTO, CA – California is set to launch its own brand of affordable insulin on January 1, 2026, a move aimed at significantly reducing prescription drug costs for residents. Governor Gavin Newsom announced Thursday that the state will begin selling its “CalRx” label insulin, nearly three years after first unveiling plans for state-branded generic medications.
This initiative is part of a broader effort by California to tackle rising prescription drug prices. The state has partnered with the nonprofit Civica, which will also distribute its economical diabetes medication to pharmacies nationwide. California committed $50 million towards the development of its CalRx insulin.
Upon its launch, insulin pens under the state brand will be available at a recommended price of $11 per pen, or a maximum of $55 for a five-pack, according to Civica. Governor Newsom emphasized the ease of access, stating at a Los Angeles news conference, “You don’t need a new prescription. It’s access on the basis of affordability.”
The new insulin pens will be interchangeable with glargine, a generic alternative to more expensive once-daily injections used to regulate blood sugar. For comparison, a five-pack equivalent of Eli Lilly’s Rezvoglar sells to pharmacies for over $88, though consumer prices may vary based on insurance.
California’s venture into insulin manufacturing stems from a 10-year agreement with Civica and Biocon Biologics, inked in early 2023. Officials at the time expressed hope that California’s entry into the market would drive down overall insulin prices.
This isn’t the state’s only foray into lowering drug costs. In April, Newsom announced that California would also sell the overdose medication naloxone under its own label, making the crucial nasal spray and injectable forms more accessible in the fight against the nationwide overdose crisis.
Approximately 38 million Americans, including about 3.5 million Californians, live with diabetes, according to the American Diabetes Association. The announcement has been met with enthusiasm from consumer health advocates. Chris Noble, organizing director of Health Access California, praised the effort, stating, “California consumers need relief now, so health advocates are relieved to see CalRx moving quickly to lower insulin costs for the people of California while continuing to pursue other needed prescription drug cost solutions.”
While the program holds significant promise for patient savings, state analysts have cautioned that California’s market entry could potentially lead to other manufacturers reducing the availability of their drugs, an unintended consequence.
State lawmakers approved $100 million for the project in 2022, with half dedicated to developing three types of insulin and the remainder allocated for investment in a manufacturing facility. State documents from 2023 project that the program could save many patients between $2,000 and $4,000 annually. Furthermore, lower costs are expected to generate substantial savings for the state, which procures the product annually for millions of individuals enrolled in its publicly funded health plans.