A pharmacy group is taking a wait-and-see approach after California Governor Gavin Newsom (D) announced several drug reforms–including a state generic prescription drug label.
If the proposed reforms are approved, California would be the first state to have its own generic drug label.
“A major cause of skyrocketing prescription drug prices is bargaining asymmetry, by which the pharmaceutical industry, often wielding monopoly power, is left unchecked, in the absence of a strong counterparty at the bargaining table…” Newsom said in the executive order.1
Establishing a single-purchaser for the highest-cost prescription drugs will yield “valuable insights into the design of a broader single-payer system, and move the State one step closer to a comprehensive solution for affordable and accessible health care for all.”1
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