California Gov. Gavin Newsom (D) announced Thursday that cheaper diabetic insulin made in the state, an effort he unveiled more than three years ago, will hit shelves in January.

A five-pack of CalRx brand 3ml insulin pens will be sold to pharmacies for $45 total and will cost patients a maximum of $55 per package. Newsom’s office compared the price to similar insulin products, which have a wholesale price ranging from about $90 to more than $400 for the same amount of medication.

“No Californian should have to ration insulin or go into debt to survive, and I won’t stop until health care costs are crushed for everyone,” the governor said in a statement Thursday.

California is the first state to bypass Big Pharma by producing its own insulin, which about 40 million Americans depend on to control their diabetes.

“California didn’t wait for the pharmaceutical industry to do the right thing; we took matters into our own hands,” Newsom said.

California Governor Gavin Newsom speaks during a press conference announcing $11 insulin and prescription drugs with the CalRX program inside a Cedars-Sinai pharmacy in Los Angeles, California.
California Governor Gavin Newsom speaks during a press conference announcing $11 insulin and prescription drugs with the CalRX program inside a Cedars-Sinai pharmacy in Los Angeles, California.

PATRICK T. FALLON via Getty Images

the state Health and Human Services Agency Secretary Kim Johnson praised the progress because it brings California closer to a place “where no one is forced to choose between their health and their financial stability.”

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But Californians won’t be the only ones who can access cheaper insulin. Civica Rx, the nonprofit generic drug maker the state partnered with on the project, says it will also distribute the affordable diabetes drug to pharmacies across the country under its own brand through a partnership with Biocon Biologics.

When Newsom announced the effort in 2022, he noted that out-of-pocket prices for insulin were around $300 to $500 a month for some people. Although some federal policies have helped reduce the cost for many patients, prices have skyrocketed for others who get their insulin through low-income health clinics.

The insulin that will hit the market in January 2026 represents an unexpected turn of events. In February, a state official told lawmakers that the initiative was not moving “as quickly as we had hoped.” A month earlier, industry experts told CalMatters they believed it would be several years before state-made insulin would be available.