TEVA - California Governor Gavin Newsom Proposes State-Run Prescription Drug Label
In a move that could rock the pharmaceutical industry, California Governor Gavin Newsom announced his intent to create the first state-run prescription drug label in the U.S. This entity would theoretically leverage the size and power of the California population to negotiate advantageous prices from generic drug manufacturers.
"Prescription drug prices are too high," Newsom wrote in a tweet on Thursday morning, adding that it's "time to take the power out of the hands of greedy pharmaceutical companies."
The concept is part of a wider slate of measures Newsom plans to include in the budget proposal his administration will soon introduce. Taken together, the proposals are aimed at bringing down the considerable healthcare costs in California, which is already burdened by a relatively high cost of living.