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In an effort to make the life-saving prescription more affordable amid rising insulin prices, California will start producing its own low-cost insulin, Governor Gavin Newsom said on Thursday.
The move is made possible by the state budget allocating $100 million for the manufacture of the drug at a lower cost.
"Nothing, nothing epitomizes market failures more than the cost of insulin," Newsom said in a video posted to his Twitter account.
A production plant in California would receive $50 million, according to Newsom, and it "will offer new, high-paying employment and a stronger supply chain for the drug." The development of insulin products will be paid for with the remaining $50 million.
Insulin is a prescription medicine used by more than 8 million diabetics in the United States, and it is renowned for undergoing sharp price increases.
According to a study published in 2019 in the medical journal JAMA Internal Medicine, the exorbitant cost has caused an estimated 1 in every 4 diabetics to restrict or miss doses. Due to their higher likelihood of being uninsured or having inadequate insurance, patients who identify as Black, Latino, or Native American suffer disproportionately.