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California will become the first state in the nation to produce and distribute its own affordable insulin, Governor Gavin Newsom announced. Beginning January 1, 2026, CalRx® biosimilar insulin glargine pens will be available to consumers statewide — a milestone in California’s broader effort to lower prescription drug prices and improve access to essential medications.
The initiative, part of the state’s CalRx program, stems from a partnership between Civica Rx, a nonprofit generic drug manufacturer, and Biocon Biologics. Under the agreement, Civica Rx will distribute interchangeable biosimilar insulin glargine pens under the CalRx brand, offering a substantially lower-cost alternative to major pharmaceutical brands such as Lantus®.
According to the state, CalRx insulin glargine pens will be sold to pharmacies for $45 per five-pack and to consumers for a suggested retail price of no more than $55. The state will cap the wholesale price at $11 per pen in a five-pack, dramatically undercutting average retail costs.
“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. “By manufacturing our own insulin and pricing it affordably, California and Civica are showing the nation what it looks like to put people over profits. No Californian should ever have to ration insulin or go into debt to stay alive.”
Insulin glargine is a long-acting insulin analog used by millions of Americans with diabetes to regulate blood sugar levels. Because the CalRx insulin is interchangeable with Lantus®, patients can substitute it without needing a new prescription.
Civica Rx President and CEO Ned McCoy said the partnership with California represents a shared vision for affordable health care. “We are grateful for the support of the state of California for our effort to bring affordable insulin to all Americans,” McCoy said. “The state shares our mission to ensure a sustainable, quality supply of affordable, essential medicines for people who need them.”
California Health and Human Services Agency Secretary Kim Johnson said the initiative marks a “significant milestone” in the state’s ongoing efforts to reduce drug costs and promote financial stability for patients. “Lowering the cost of insulin moves us closer to a California where no one is forced to choose between their health and their financial stability,” Johnson said.
The agreement with Biocon Biologics complements Civica Rx’s broader insulin development strategy, which includes producing interchangeable biosimilar versions of both long-acting and rapid-acting insulin under the CalRx label. The state said these efforts will help ensure a reliable, affordable insulin supply for California residents.
Elizabeth Landsberg, Director of the Department of Health Care Access and Information (HCAI), said the CalRx program demonstrates California’s commitment to transparency and fairness in prescription drug pricing. “We’re committed to transparent pricing, eliminating hidden costs, and ensuring equitable medication access for uninsured, underinsured, and vulnerable residents across our state,” she said.
Health advocates praised the move as an example of California’s leadership in addressing the nationwide insulin affordability crisis. Chris Noble, Health Access California’s Organizing Director and a member of the CalRx Insulin Patient Advisory Council, said the program provides relief for both consumers and the state budget. “California consumers need relief now,” Noble said. “As a person dependent on insulin to live, I’m relieved to see CalRx moving quickly to lower insulin costs for Californians while continuing to pursue other needed prescription drug cost solutions.”
Allison Hardt, T1 International’s Community Development Director and a member of the CalRx Advisory Council, called the program a step toward reshaping the pharmaceutical landscape. “California’s continued leadership in tackling insulin’s broken market is a promising step forward,” Hardt said. “We celebrate progress that puts patients first and secures insulin at a stable, transparent price while encouraging bold next steps toward true public manufacturing — for people, not for profit.”
The launch of CalRx-branded insulin is part of Governor Newsom’s 2019 executive order aimed at reducing prescription drug costs and ensuring fair pricing for all Californians. No other state has yet implemented a program to produce and sell its own affordable medications to compete directly with market-priced products.
The announcement also builds on the success of the CalRx Naloxone Access Initiative, which lowered the price of the life-saving overdose-reversal medication and allowed the state to expand its availability.
Newsom’s administration has continued to advance health care affordability through legislation, including SB 40, which caps insulin cost-sharing at $35 per month, and SB 41, which regulates the practices of pharmacy benefit managers that negotiate prices between drug manufacturers, insurers, and pharmacies.
Since taking office, Newsom has made reducing health care costs a key priority of his administration. “No family should ever have to choose between paying for their medications or putting food on the table,” he said. “California is showing the nation what it means to put patients before profits.”
