California Gov. Gavin Newsom (D) announced Thursday that the state will start producing its own insulin, lowering the price of an essential treatment that typically costs people with diabetes thousands of dollars of years to obtain.

The endeavor will make California the first state to produce its own drugs ― an undertaking long reserved for private pharmaceutical companies that operate under lax government oversight.

“Nothing epitomizes market failures more than the cost of insulin,” Newsom said in a video announcing the project. “Many Americans experience out-of-pocket costs anywhere from $300 to $500 per month for this lifesaving drug. California is now taking matters into our own hands.”

The endeavor is included in the $308 billion state budget Newsom signed last week. In it, $100 million is set aside for insulin production contracts that will allow people with diabetes to obtain insulin “at a cheaper price, close to at-cost,” the governor said. Half of the funding will be spent on the […]