California could be the first state to sell its own brand of generics

In an effort to lower drug prices, California Gov. Gavin Newsom just unveiled a plan that could make the state the first in the nation to sell generics under its own label. As detailed in Newsom’s budget proposal for the upcoming year, the state would contract with generic drug manufacturers who would make drugs on behalf of the state so it could sell them and drive competition in the market. It’s unclear which drug manufacturers the state would contract with, or which drugs the state plans to focus on. The Los Angeles Times reports that Newsom is also expected to announce a plan for companies to bid to sell their drugs at the same price in the state.