New Manufacturer: State of California?

New Manufacturer: State of California?
Amanda Bisel, PharmD, Allina Health

With rising medication costs, California’s governor, Gavin Newsom, has proposed a creative solution - their own generic brand of medications. The proposal suggests that California would contract with one or two drug manufacturers to make the product, which would then be sold under their own generic brand label. The hope is that these products will be more affordable, leading to increased competition in the generic drug market and lower drug prices.

The government has used many methods to directly affect the rising medical costs, but never considered manufacturing of medications. Other companies have tried to address medication costs by manufacturing their own medications. One example is Civica Rx, is a non-profit generic injectable drug manufacturer that was created in 2018 to help combat drug shortages and increasing drug costs. Over 1,000 hospitals in the country obtain medications from this company at lower prices compared to other drug manufacturers.  

There has been debate and interest regarding this plan in the general public, politicians, health care professionals and drug manufacturers. Although the plan would not likely save California much in healthcare costs, many are applauding the idea of change in the light of inflating medical costs.

Reference: 

  1. Gutierrez, M. California eyes selling its own brand of generic prescription drugs to battle high costs. Los Angeles Times website. https://www.latimes.com/california/story/2020-01-09/california-generic-p.... Published January 9, 2020. Accessed February 16, 2020.