The California State Assembly has passed a bill that restricts generic versions of medicines called biosimilars, upon their launch in the US.
Biosimilars are medicines whose active drug substance is derived from living cells. They have been used to treat cancer and other diseases.
As per the bill, drug stores should inform doctors and on few occasions to patients when a cheaper biosimilar drug is replaced for a brand-name medicine.
As per the existing law, a pharmacist can substitute generic drugs without informing the prescriber.
The California Association of Health Plans president Patrick Johnston was quoted by Bloomberg as saying, "California should not jump the gun when the federal government has a process under way to sort out the benefits and risks of some of the costliest pharmaceuticals coming on the market.
"The FDA should finish its process and determine which drugs are suitable for substitution before California enacts any new laws."
According to research firm IMS Health, worldwide sales of biologics grew by 69% in five years to $157bn in 2011.
