Nearly $101 million was included in the recently approved budget package for the development and production of low-cost biosimilar insulin products.
The recently signed budget package includes $101 million to develop and manufacture biosimilar insulin. The project aims to increase California's insulin affordability and availability.
Gov. Gavin Newsom: "In California, we know people shouldn't go into debt for life-saving medication."
About half of the funding is earmarked for low-cost interchangeable biosimilar insulin products and $50 million for a California manufacturing facility.
The remaining $2.8 million is set aside for contract partnerships, monitoring, legal compliance, and other operations.
Biosimilar products are "highly similar" to FDA-approved products without meaningful clinical differences. Biosimilars may be cheaper than generic drugs.
Newsom, who is running for re-election this year, said the effort will create high-paying jobs and a stronger drug supply chain.
The governor's first executive order aimed to combat rising prescription drug costs and expand health care access to more Californians, including undocumented youth. In 2020, he signed a bill to produce generic prescription drugs.