How hard would it be to found an insulin startup? This seems like the kind of problem designed to be intractable, the "busy work" of bureaucratic private health care systems.
Depends on the type of insulin you want to make, but if you want to be at the cutting edge it would likely cost around a billion dollars. You have to avoid the intellectual property minefield on the manufacturing side. The production of insulin and its delivery mechanisms are heavily patented and the big pharma companies will shut you down if you infringe on anything. If you want a reference for this happening you ca…
I can't speak to drug manufacturing, but I know from experience that when it comes to medical devices, you save almost 10x in up front fixed cost by outsourcing, like California is doing. You spend more per unit, but still profit, so you can build a healthy warchest while you accumulate experienced personnel to build out a more vertically integrated manufacturing process.