Gov. Newsom announces California will make its own insulin to fight high drug costs

California Governor Gavin Newsom announced this week that the state will soon begin making its own insulin that will be available to those who currently struggle to get it under restrictively high drug prices.

The governor announced the new plan to fight the high cost of insulin on Thursday, telling residents, “California is going to make its own insulin. It’s simple. People should not go into debt to get life-saving medication.” In the Twitter video accompanying his announcement, Newsom says $100 million of the 2022-23 state budget he just approved will go toward the manufacturing and distribution of low-cost insulin.

“California is going to make its own insulin. Nothing epitomizes market failures more than the cost of insulin,” Newsom says. “Many Americans experience out-of-pocket costs anywhere from $300 to $500 per month for this lifesaving drug. California is now taking matters into our own hands.” 

Newsom explains that $50 million of the funding will go toward the development of a low-cost insulin, and the other half will fund the construction and running of a new facility in the state to manufacture the drug.

According to the Centers for Disease Control and Prevention (CDC), 37 million Americans suffer from diabetes and in order to manage it, need access to lifesaving insulin. The rising cost of the drug over the years has resulted in some patients not being able to access their medication, leading to complications and in some cases, even death.

According to UCLA Health, the majority of adults in the state are either diabetic or pre-diabetic. Nearly half of California adults, including one out of every three young adults, have either prediabetes — a precursor to type 2 diabetes — or undiagnosed diabetes.