California has partnered with a New Jersey-based pharmaceutical company, Amneal Pharmaceuticals, to purchase a generic version of the opioid overdose reversal drug, Narcan.
Gov. Gavin Newsom announced the deal on Monday.
The big picture: The deal will allow California to purchase naloxone at $24 per pack, which is about 40% cheaper than the market rate.
- That allows California to acquire 3.2 million packs in one year instead of two million for the same cost.
- The naloxone purchased will be distributed for free to first responders, universities, and community organizations through California’s Naloxone Distribution Project.
- The agreement will lead to the availability of naloxone under the CalRx label, a program aimed at providing much cheaper, competing versions of life-saving medications to force drug companies to lower their prices.
Why it matters: California aims to address the significant increase in opioid overdose deaths in California.
- There were 7,385 such deaths in 2022, more than double the fatalities in 2019.
What they’re saying: “California is disrupting the drug industry with CalRx – securing life-saving drugs at lower and transparent prices,” Newsom said. “As we continue the effort to bring $30 insulin to the market, the state is now set to purchase life-saving naloxone for almost half of the current market price – maximizing taxpayer dollars and saving more lives with this miracle drug.”
