California could tap nonprofit Civica Rx to produce insulin

The state of California is reportedly planning to work with the nonprofit generic drug company Civica Rx to produce the hormone, according to NBC. California could confirm the partnership in mid-December, but the partnership has not yet been verified.

This summer, California Governor Gavin Newsom hinted that the state planned to manufacture insulin to help people with diabetes save money.

California would likely be the first state to produce insulin for residents.

A state-run website concluded that California has the highest number of new diabetes cases in the U.S.

In March, Lehi, Utah–based Civica Rx announced that it intended to manufacture low-cost insulin. The organization said then that it would set the recommended consumer price at a maximum of $30 per vial or $55 for a box of five pen cartridges.

In March, the Juvenile Diabetes Research Foundation (JDRF) announced that it would partner with Civica Rx to develop insulin biosimilars.

The analyst firm GlobalData anticipates that greater availability of biosimilar insulins could ultimately lead to lower insulin prices across the marketplace.

Some insulins cost multiple hundreds of dollars. A vial of Humalog insulin, for instance, costs $393.00 per vial, according to GoodRx Health.

Roughly a quarter of patients ration their insulin or skip taking insulin doses, which can damage nerves, blood vessels and vital organs while potentially exacerbating diabetes-related disability. In extreme cases, poor insulin affordability can lead to renal disease, amputations or death.

Governor Gavin Newsom campaigned on lowering prescription drug prices and, in early 2019, touted a series of initiatives intended to tackle spiraling healthcare costs. Among those initiatives was a plan to create a single-purchaser system for prescription drugs.

President Joe Biden is also aiming to reduce the cost of insulin. The Inflation Reduction Act, which the President signed into law in August, would cap the out-of-pocket price of insulin at $35 for Medicare recipients beginning in 2023.