Dork put his finger on a lot of it. Yes, there are instances when drug manufacturers have used their superior position to gouge the customer/patient/ins. co. I used to take tetracycline, one of the oldest antibiotics in the bag, the patent having run out 50 years ago. I took it for years for Rosacea, a minor chronic skin infection, and it cost a few bucks a prescription for decades. Suddenly, it is now costing between $300 and $700 a prescription. Wtf! It’s still chump change in Canada...I checked.
I am grateful that drug manufacturers and enterprising doctors still care enough to go after diseases and invent new drugs though. My wife contracted a dread “orphan disease,” which is the term in use to described those so rare that they do not get much attention. There are around 6000 of those diseases now known and identified. Some are deadly and/or disabling. Only a very few of those diseases have effective drugs to control or cure the effects. The one my wife contracted - Atypical Hemolytic Uremic Syndrome (aHUS) - only has somewhere less than 500 diagnosed patients with the disease in the U.S. The drug which was developed that was found to control aHUS, Soliris (eculizumab), cost over a billion dollars to invent and guide through tests for FDA approval. That is a normal and average cost for any drug to get to that stage. My wife’s drug costs $24,000 every 2 weeks. It is said to be the most expensive drug in the world and paid by Medicare and supplemental insurance in my case, you are no doubt wondering.
If you amortize the cost to develope and produce the drug (it takes three years to “grow” each dose), divided by the minuscule number of recipients even though it is used for another rare disease, PNH, it is easy to see why the cost is astronomical, yet we are thankful for the dedicated doctors at Harvard who took it upon themselves to develope the drug, then organize their new company to produce and distribute it, plus a system which allows us to pay for it. Many are not so lucky to be in this country which has it (most countries refuse to pay for it. Their patients suffer and die), and some in the U.S. are frozen out because of their insurance situation.
Drugs are complicated. If the rare people who can produce these drugs cannot be paid, then the pipeline will dry up.
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“You can vote your way into socialism, but you have to shoot your way out.” — Too fundamental to have an attribution