Calif to Become a Drugmaker

[Ben]

Government run pharmaceutical manufacturing. Should be interesting.

https://www.latimes.com/california/story/2023-03-18/newsom-announces-50m-contract-to-make-californias-own-brand-of-insulin

[dogmush]

From the article:

Under the deal, a 10-milliliter vial — normally costing $300 — would be made available for the same $30 it costs the state to manufacture and distribute the drug,

We'll see if they can actually make and distribute the drug for that price, or if other costs start creeping in.  I could see this becoming a huge sink of taxpayer funds as the drug cost increases due to whatever reason, but cali.gov is unwilling to raise prices and just takes the loss.

Normally I would scoff at the idea of government attempting to make and distribute anything at all cheaper that the free market, but retail drugs in the US is probably farther away from the free market that Soviet healthcare was.  Between hidden prices, huge barriers to entry for new competition, and incestuous company/regulator relationships even Cali might be able to squeak out some more efficiency.

[HankB]

Between contractors, suppliers, distributors, and so forth and so on, I see another opportunity for Kali dems to convert public funds into private profit.

[Ben]

Between contractors, suppliers, distributors, and so forth and so on, I see another opportunity for Kali dems to convert public funds into private profit.

Rather than profit, I'd be afraid that they turn it into a diabetic bullet train.

I do recognize Dogmush's point though. Some of these drugs are just ridiculously priced. The "R&D" argument can only go so far in justifying prices.

[WLJ]

Fully expecting them to announce the drugs will be free for blacks in the name of equity

[K Frame]

My guess? They'll make aspirin. Won't be able to make nearly enough of it, what they do make will be contaminated, and it will cost $3,376 a tablet.

[dogmush]

Rather than profit, I'd be afraid that they turn it into a diabetic bullet train.

I do recognize Dogmush's point though. Some of these drugs are just ridiculously priced. The "R&D" argument can only go so far in justifying prices.

Especially since there's no R&D cost to generic insulin.  That drug's been known and off patent for a while now.  Sure, the new designer, slow release, cool guy insulins that let you eat moon pies?  I can see those being patented and kinda pricey still, but the generic stuff from 1921?  Or even the human derived stuff from 1978?  That aught to be pretty cheap by now.

[MechAg94]

My guess? They'll make aspirin. Won't be able to make nearly enough of it, what they do make will be contaminated, and it will cost $3,376 a tablet.

Something tells me you have worked with the Govt before.   

[HankB]

My guess? They'll make aspirin. Won't be able to make nearly enough of it, what they do make will be contaminated, and it will cost the taxpayers $3,376 a tablet.

FIFY - remember it will be subsidized so the OTC price will be pennies per tablet.

Many drugs have a HUGE markup. Some years back I was prescribed Pataday eyedrops. At the time my insurance paid for it, but then I checked the price . . . 

The concentration of medicine in the saline carrier was miniscule - I ran some numbers and after subtracting out packaging, printing, and saline costs, the retail price of the drug was on the order of $30,000,000 a gallon. Yep. Thirty million dollars a gallon.

Even with R&D and FDA approval costs . . . that's still a lot. (It's now OTC and the price has come down. )

[Pb]

Yeah... some drug prices are insane for stuff that is patent expired even.

My mother used to need an eye ointment.  It was petroleum jelly and salt.  It was about $90 for a quarter oz tube.

We need a lot more generic substitutes....

Reading the article, CA isn't making the drug.  They are hiring a private generic drug maker to make the drug, and slap a label on it.

Sounds like they are just going to subsidize the purchase of this generic insulin.