California to Produce Own Generics to Lower Prescription Drug Costs

Country: UNITED STATES | Region: NORTH AMERICA | Type: Policy | Keywords: #calrx #essentialmedicines #generics #hhs #prescriptiondrugs #sb852 #statedruglabel


PRICENTRIC BRIEF:
  • California Governor Gavin Newsom has signed legislation aimed at bringing down the cost of prescription drugs for taxpayers, employers, and consumers in California by teaming up with manufacturers to produce and distribute generic prescription drugs
  • Under SB 852, California will create Cal Rx, a state-sponsored prescription drug label, and the California Health and Human Services Agency (CHHS) will develop partnerships with drug manufacturers to make essential medicines more affordable and accessible to patients
  • CHHS will target drugs to manufacture that produce the biggest savings for California – already, California has started to identify potential medicines for state-led generic drug purchasing and manufacturing – and will submit a report to legislators by July 1, 2022, analyzing how its efforts have impacted competition, access, and costs for the drugs in question

THE DETAILS

SACRAMENTO, California, The United States – California Governor Gavin Newsom has signed legislation aimed at bringing down the cost of prescription drugs for taxpayers, employers, and consumers in California by teaming up with manufacturers to produce and distribute generic prescription drugs.

Under SB 852, California will create Cal Rx, a state-sponsored prescription drug label, and the California Health and Human Services Agency (CHHS) will develop partnerships with drug manufacturers to make essential medicines more affordable and accessible to patients. In addition, the bill seeks to increase competition in the market.

California has long sought to enhance its leverage its purchasing power to increase generic drug manufacturing to make prescription drugs more affordable. Already, California has started to identify potential medicines for state-led generic drug purchasing and manufacturing.

CHHS will target drugs to manufacture that produce the biggest savings for California and will submit a report to legislators by July 1, 2022, analyzing how its efforts have impacted competition, access, and costs for the drugs in question.

Governor Newsom commented, “The cost of health care is way too high. Our bill will help inject competition back into the generic drug marketplace – taking pricing power away from big pharmaceutical companies and returning it to consumers. California is using our market power and our moral power to demand fairer prices for prescription drugs. I am proud to sign this legislation affirming our ground-breaking leadership in breaking down market barriers to affordable prescription drugs.”

SB 852 author, Senator Richard Pan (D-Sacramento), said, “Prescription drugs don’t work if people cannot afford to take them. I thank the Governor for his leadership to assure Californians will be able to have access to a reliable supply of affordable generic medications. With the signing of SB 852, California leads the country again in pursuing innovative ideas to increase health care access and affordability, this time for prescription drugs.”

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