California eyes getting into generics


National News

January 9, 2020 - 10:21 AM

SACRAMENTO, Calif. — California would become the first state to sell its own brand of generic prescription drugs in an effort to drive down rising health care costs under a proposal Gov. Gavin Newsom is expected to unveil in his new state budget Friday.

A broad overview of the ambitious but still conceptual plan provided by Newsom’s office says the state could contract with one or more generic drugmakers to manufacture certain prescriptions under the state’s own label. Those drugs would be available to all Californians for purchase, presumably at a lower cost. The governor’s office said the proposal would increase competition in the generic drug market, which in turn would lower prices for everyone.

Whether drugmakers would follow California’s lead as Newsom’s administration has suggested is far from certain. And other key details, including what prescriptions would be manufactured, were not provided.

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