California is set to become the first state to sell its own low-cost insulin, loosening Big Pharma’s grip on the market for the expensive diabetes drug and notching a win for Gov. Gavin Newsom’s CalRx program.
Through an agreement secured by nonprofit generic drug manufacturer Civica Rx with Biocon Biologics, California residents will be able to purchase an interchangeable biosimilar glargine insulin pen under the CalRx brand at a significantly reduced cost compared to other long-acting insulin brands.
The CalRx insulin pens, which people with the metabolic disease diabetes use to control blood sugar levels, will be available to consumers for a suggested retail price of no more than $55 per five-pack of pens beginning Jan. 1, according to a release from Newsom’s office.
“California didn’t wait for the pharmaceutical industry to do the right thing — we took matters into our own hands,” Newsom said in a statement announcing the new drug. “No Californian should ever have to ration insulin or go into debt to stay alive — and I won’t stop until health care costs are crushed for everyone.”
Amid the for-profit ethos that dominates the healthcare system, the move establishes California as a leader among the states in driving costs down and spotlights the state’s ability to leverage its huge economy and buying power. It also finally delivers on Newsom’s promise to make CalRx a cornerstone of his administration.
In a 2017 class-action lawsuit, the top three manufacturers of insulin were accused of dramatically raising prices each year: Eli Lilly, Sanofi, and Novo Nordisk. In the complaint, it was alleged that a prescription that had previously cost patients $25 had risen to $300 and politicians took the issue and ran with it.
Since then, the cost of the drug has decreased, although the federal government sued pharmacy middlemen in 2024, accusing them of contributing to the steep insulin price hikes.
Critics have long pointed to the drug as an example of what happens when the pharmaceutical industry engages in price gouging. In recent years, President Donald Trump and former President Joe Biden have taken credit for capping the cost of insulin for Medicare recipients at $35.
According to the release, the CalRx glargine insulin pens are interchangeable with Lantus, a type of long-acting insulin, and will be available to California pharmacies for $45 for a 5-pack of 3 mL pens. State figures show that similar products from name-brand drug companies cost pharmacies from $89 to $411 to acquire.
© 2025 Newsmax. All rights reserved.
