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In a game-changing move to tackle rising healthcare costs, California Governor Gavin Newsom announced the state’s plan to begin making its own insulin during a news conference held in Southern California.

The state has signed a $50 million contract with the non-profit drug manufacturer Civica, with the aim to reduce the cost of insulin by as much as 90%.

The generic Cal RX label will be available at pharmacies once the insulin is manufactured, which is expected to be delivered in 2024.

This move is expected to benefit those who are struggling to afford insulin, with a vial costing only $30, regardless of insurance coverage.

Governor Newsom also plans to manufacture naloxone or Narcan, which is used to reverse opioid overdose, as part of California’s efforts to tackle the fentanyl crisis.

Although there are still several regulatory approvals and questions about the establishment of a manufacturing facility, this move is a step towards changing the arc of healthcare costs for Californians.

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