California Governor Newsom announced on October 16th that in order to improve access to essential medications for all Californians, the state will begin selling low-cost private label insulin pens starting next year.
According to a statement from the Governor’s office, this insulin pen will be sold under the California private label CalRx, priced at $11 per pen or $55 for a pack of five, with sales set to begin on January 1, 2026. This initiative stems from an agreement reached in 2023 between California and drug manufacturers Civica and biopharmaceutical company Biocon Biologics to produce California’s own brand of affordable insulin.
“California did not wait for the pharmaceutical industry to do the right thing – we chose to take matters into our own hands to solve the problem,” Newsom said in a statement. “No Californian should be forced to ration insulin to stay alive or be pushed into debt – I will not stop until we fully reduce healthcare costs.”
Newsom stated in 2023 that this plan in California will reduce insulin prices by about 90%, saving each patient between $2,000 and $4,000 annually.
Recently, Newsom also signed a new law setting a monthly cap of $35 for insulin co-pays for consumers in California.
The American Diabetes Association (ADA) praised the Governor’s actions, believing the new law will bring “much-needed financial relief” to diabetes patients in the state. The association estimates that approximately 3.5 million adults in California have diabetes.
Christine Fallabel, ADA’s Director of State Government Affairs, stated, “For many years, many American diabetes patients have been forced to make difficult choices – limiting the use of this life-saving medication to pay for other essentials such as food, groceries, or rent.”
Insulin pens are medical devices that allow diabetes patients to self-inject insulin. According to the Governor’s office, CalRx insulin pens are similar to the long-acting insulin analogue “insulin glargine” and can be used interchangeably to help control blood sugar levels in diabetic patients.
Newsom noted that California pharmacies will be able to purchase a box of five CalRx insulin pens for $45 and sell them to consumers at a suggested retail price not exceeding $55.
On the same day, Civica announced that they will supply their own manufactured insulin pens to pharmacies nationwide. In California, this product will be marketed under the CalRx brand through collaboration with the state government.
Ned McCoy, President and CEO of Civica, stated in a release, “Civica will supply insulin glargine at a single, transparent low price, without hidden rebates or unreasonable markups that exploit consumers.”