California could start manufacturing its own drugs

Sept. 3, 2020

California could soon become the first state to distribute its own line of generic drugs. 

This week, California’s legislature passed a bill that would give the state’s top health agency the power to partner with at least one drug manufacturer to produce or distribute generic and biosimilar drugs. Aside from targeting “at least one form of insulin” (provided that it can be produced at a competitive cost), the bill does not stipulate which drug products it would manufacture.

Lawmakers argued that the new measures help secure California’s access to generic medicines. Because California is the most populous U.S. state, competing in the generic drug market could also drive down prices.

A lead lobbyist from the Association for Accessible Medicines, the generic industry’s largest trade group, told US News that it supported the measure to partner with generic manufacturers and increase competition in the market.  

The bill will now head to the governor’s desk to be signed or vetoed. 

Read the full US News report.