California Wants to Make Cheap Insulin. Here’s How It Could Work

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California Wants to Make Cheap Insulin. Here’s How It Could Work
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The state plans to roll out “biosimilars” that mimic brand-name versions at a dramatically reduced price.

, around one in four users reported having to skip doses or use less of it than prescribed because of the cost.

Under Newsom’s plan, California would make insulins similar to currently available brand-name versions—known as biosimilars. State officials haven’t worked out exact cost targets, but Alex Stack, deputy communications director for the governor's office, says patients can expect to pay anywhere from 47 to 95 percent less than what they currently do. “If we can do it, there’s no reason others can’t and still make money,” says Stack.of the state’s $308 billion budget for the effort.

California’s effort isn’t the only one aimed at lowering the cost of insulin. Civica, a nonprofit pharma company based in Utah,that it would manufacture and distribute its own low-cost insulin. The company plans to make biosimilar versions of the three insulins that account for most daily use in the United States—Lantus, Humalog, and Novolog—in both vials and pens. Civica is building a $140 million facility in Virginia, where it will manufacture the insulin, among other drugs.

Civica intends to limit its prices to $30 for a vial and $55 for a box of five pen cartridges. “Our pricing is based on what it costs to manufacture and distribute the product, plus a small margin that makes production sustainable,” says Allan Coukell, Civica’s senior vice president of public policy.

Coukell says Civica will make its insulin widely available to drug stores across the US, including online ones. “We'll make it available at any pharmacy that wants to purchase it and abides by our pricing policy, which is not to mark it up too much before it gets to the patient,” Coukell says.to develop a biosimilar, but California and Civica are shortening that timeline by partnering with manufacturers that are already in the process of making their own insulin.

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