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SACRAMENTO, Calif.—California would become the first state in the nation to launch its own prescription drug label under a plan proposed by Gov. Gavin Newsom that aims to use governmental purchasing power to control rising health-care costs.

The plan, which the Democrat said will be part of his new budget proposal, would allow California to contract with generic-drug manufacturers to make the medicines available for sale to all Californians, according to a summary released by his administration.



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