Governor Gavin Newsom has positioned California’s generic insulin brand, CalRx, as a way to reduce drug costs, though the program has seen limited uptake since its launch.
The CalRx launch and its current limitations
State health officials reported that over 120,000 five-pen packs of insulin glargine have been distributed at $55 each—far below the $89 to $411 charged by leading brands before retail markups. This initiative marks the first time a state has entered the market under its own prescription label, directly challenging Eli Lilly, Sanofi, and Novo Nordisk. Despite availability through major distributors, adoption has been limited.
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Pharmacist Margaret On keeps two boxes of the insulin at a Walgreens in San Francisco’s Japantown but has yet to dispense any. She stocks them for uninsured patients or emergencies. “It’s good to have if a patient comes in and doesn’t have health insurance,” she said. “Or just in case of emergencies.”
State goals and market reach
The governor aims to expand access to affordable versions of high-cost or scarce medications. Beyond insulin, the state provides free naloxone and plans to introduce albuterol inhalers in public schools. Over the next two years, California will also roll out epinephrine injectables, similar to EpiPens, and a state-branded tuberculosis treatment. Before leaving office, Newsom hopes to add generic GLP-1 drugs to compete with Ozempic and Wegovy.
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The impact of CalRx insulin has been modest so far. Geoffrey Joyce, who leads health policy at the University of Southern California’s Schaeffer Center, called the effort largely symbolic at this time. “There is some value, but it’s for a very limited number of drugs for just a fraction of the population,” Joyce said.
Local reactions and distribution challenges
The insulin is available at Amazon, Costco, and select retail pharmacies like CVS, Walgreens, and Walmart. In July, Chris Noble, a healthcare organizer with Type 1 diabetes, visited a CVS in Corona to request a box. The pharmacist didn’t have it in stock but promised a 24-hour turnaround. “I have insurance, but this could be a backup if my pump fails while traveling,” Noble said. “Now I know I can get insulin quickly if needed.”
