California could be 1st state to sell own prescription drugs

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

Gov. Gavin Newsom announced Thursday that he wants the state to contract with generic drug companies to make prescription medications on its behalf to sell to the public.

The Democratic governor said the goal is to lower prices by increasing competition in the generic market. 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 lawmakers by Friday. The governor's office did not say how much the proposal would cost.