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Governor of California proposes state-run drug label

In a bid to lower the costs of medicines, California’s governor has suggested contracting generic drug manufacturers to make pharmaceutical products for the state to sell, according to reports.

The US state of California’s Governor Gavin Newsom has reportedly proposed a state-run prescription drug label, according to NBC News.

Newsom has purportedly suggested that California contract generic drug companies to manufacture prescription medications on its behalf in order to sell them to patients. The move would be in an effort to lower drug prices through increasing competition in the generic market, says the report.

The plan will be a part of Newsom’s budget proposal, which will be presented today by the governor, according to the report.

“Consumers would directly benefit if California contracted on its own to manufacture much-needed generic medications like insulin — a drug that has been around for a century yet the price has gone up over tenfold in the last few decades,” said Anthony Wright, executive director of Health Access California quoted by the news outlet.

12 January 2020


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