Is California Planning to Sell Its Own Generic Drugs?

January 24, 2020

California’s Democratic Governor Gavin Newsom earlier this month proposed his potential solution to reduce drug prices: have the state manufacture its own generic drugs.

According to a Pharmacy Times report, the proposal, which was included in the governor’s 2020-2021 budget, involves contracting with at least one generic drugmaker to manufacture drugs on the state’s behalf.

While supporters see the proposal as a way to boost competition and lower prices, opponents say the proposal would likely fall flat.

“If California enters the market itself, it will face the same market dynamics that have led to generic prescription drug price deflation in the past 3 years, as well as certain cases of patent abuse that have led to longer monopolies by select brand-name drugs,” Association for Accessible Medicines’ Jeff Francer said in a statement.

To read the full report on Pharmacy Times, click here.

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