California Launches Affordable Insulin Initiative with CalRx Brand

California Governor Gavin Newsom announced on October 16, 2025, that the state will begin offering its own brand of affordable insulin under the CalRx label starting January 1, 2026. This initiative aims to provide cost-effective insulin options to Californians, addressing the high prices that have burdened many individuals with diabetes.

The state has partnered with nonprofit generic drug manufacturer Civica, Inc. and Biocon Biologics to produce an interchangeable biosimilar insulin glargine pen. These pens will be available at a suggested retail price of no more than $55 for a five-pack, averaging $11 per pen. This pricing represents a significant reduction compared to current market prices. The CalRx insulin glargine pens are interchangeable with Lantus®, ensuring seamless substitution for patients. This initiative is part of California's broader strategy to lower prescription drug costs and improve medication access statewide.

Governor Newsom emphasized the state's proactive approach, stating, "California didn’t wait for the pharmaceutical industry to do the right thing — we took matters into our own hands." He added, "By beginning the process to manufacture our own insulin and pricing it at a maximum cost of $11 a pen in a five-pack, California and Civica are showing the nation what it looks like to put people over profits."

Ned McCoy, President and CEO of Civica, expressed gratitude for the partnership, saying, "We are grateful for the support of the state of California for our effort to bring affordable insulin to all Americans."

This announcement builds upon California's ongoing efforts to combat high prescription drug prices. In March 2023, the state signed a contract with Civica to manufacture affordable insulin under the CalRx brand. The initial plan was to offer a 10mL vial for no more than $30 and a box of five pre-filled 3mL pens for no more than $55, aiming to make these products available to all who need them, regardless of insurance status.

However, the program faced delays. By February 2025, there was still no firm timeline for the availability of CalRx insulin, causing concern among advocates and patients who were eagerly awaiting more affordable options.

The state's partnership with Civica and Biocon Biologics is central to this initiative. Civica, a nonprofit generic drug manufacturer, has been working to address drug shortages and high prices since its formation in 2018. In 2023, Civica announced plans to open a $140 million insulin production plant in Petersburg, Virginia, aiming to produce low-cost insulin for nationwide distribution.

Biocon Biologics, a subsidiary of Biocon Ltd., is a global biopharmaceutical company specializing in biosimilars and generic formulations. Their collaboration with Civica and California is expected to leverage their expertise in biosimilar insulin production to ensure a steady and affordable supply for the state.

The introduction of CalRx insulin at $11 per pen is poised to have significant economic and social impacts. With current insulin prices often exceeding $300 per vial, the CalRx initiative could save patients between $2,000 and $4,000 annually. By entering the insulin market, California may prompt other manufacturers to reevaluate and potentially lower their prices to remain competitive. Affordable insulin can reduce instances of rationing or skipping doses, leading to better health outcomes for the approximately 3.5 million Californians living with diabetes.

In October 2023, Governor Newsom vetoed a bill that would have capped insulin prices at $35 per month, arguing that such caps could lead to higher premiums for consumers. Instead, he highlighted the state's contract with Civica to produce its own insulin as a more sustainable solution to high drug costs.

California's CalRx insulin initiative represents a significant step toward making essential medications more affordable and accessible. By partnering with nonprofit manufacturers and setting transparent pricing, the state aims to alleviate the financial burden on individuals with diabetes and set a precedent for other states to follow.