California is the first state to challenge the pharmaceutical industry after Gov. Gavin Newsom allotted $100 million to launch CalRx, the state's insulin brand.
Half of the budget will go toward product development and the other $50 million is set aside for "a California-based insulin manufacturing facility that will provide new, high-paying jobs and a stronger supply chain for the drug," Mr. Newsom said.
About a million state residents who have diabetes can't afford the insulin they need, and across the nation, 1.2 million people "experienced catastrophic spending" after the treatment's prices hiked more than 200 percent from 2008 to 2017.
"We know people should not go into debt to receive life-saving medication," Mr. Newsom said. The budget allows California to manufacture "insulin at a cheaper price, close to at cost, and to make it available to all."
The governor did not specify how much the insulin would cost.