California lawmakers have voted to require drugmakers to provide advance notice before instituting big price increases.
The bill was approved in Legislature this week after similar proposals were rejected in last year under stiff opposition from drugmakers.
SB17 was introduced following high-profile spikes in the prices for certain drugs.
It will require pharmaceutical manufacturers to provide 60 to 90 days' notice to big purchasers such as the state and insurance companies before instituting sizeable price increases.
Supporters say it will discourage big price increases while allowing insurance companies and other big drug purchasers to plan. Drug companies say it doesn't account for discounts that large drug purchasers receive and will discourage research into lifesaving cures.