Law Will Allow Calif. to Produce, Distribute Biosimilars, Generics

As the focus on drug prices continues (see story above), California recently took a step that it hopes will “increase patient access to affordable drugs,” according to a bill recently signed by the governor. But industry experts differ on the potential impact the law ultimately will have.

On Sept. 28, California Gov. Gavin Newsom (D) signed SB-852, which will create Cal Rx, a state-sponsored generic prescription drug label. The law charges the California Health and Human Services Agency (CHHSA) to enter into partnerships to produce or distribute generic prescription drugs — including biosimilars — and at least one form of insulin, “provided that a viable pathway for manufacturing a more affordable form of insulin exists at a price that results in savings.” The drugs will be available for “public and private purchasers, providers and suppliers,” including pharmacies and PBMs, and at “a transparent price and without rebates, other than federally required rebates.” CHHSA will enter only those partnerships that “produce a generic prescription drug at a price that results in savings, targets failures in the market for generic drugs, and improves patient access to affordable medications.” The law also is aimed at dealing with drug shortages.

© 2024 MMIT
Angela Maas

Angela Maas

Angela has an extensive background of editing, reporting and writing for trade and consumer publications. She has written Radar on Specialty Pharmacy since she joined AIS Health in 2005 and has broad knowledge of the various issues at play within the space. She also has written for Spotlight on Market Access since its 2017 launch. Before joining AIS Health, she was managing editor at Employee Benefit News and Employee Benefit News Canada and managing editor at Hem Aware (a hemophilia publication), Lupus Living and Momentum (a multiple sclerosis publication). She has a B.A. in English and an M.A. in British literature from Arizona State University.

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