9 January 2020 - California would become the first state to sell its own brand of generic prescription drugs in an effort to drive down rising healthcare costs under a proposal Governor 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.

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