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California could launch generic prescription drug label

Posted at 10:44 AM, Jan 09, 2020

SACRAMENTO, Calif. (AP) - California could become the first state with its own prescription drug label.

Gov. Gavin Newsom announced Thursday he wants California to contract with generic drug companies to make prescription medications on behalf of the state so it can sell them to the public.

He said the goal is to lower prices by increasing competition in the generic market. State lawmakers must approve the plan before it can take effect.

The idea is part of Newsom's upcoming budget proposal, which he must present to the state Legislature by Friday.

The governor's office did not say how much money the proposal would cost.