• Question: How can drug companies charge such horrific prices for a years worth of a drug?

    Asked by 645druq32 to Paddy on 6 Mar 2019.
    • Photo: Paddy Sudhakar

      Paddy Sudhakar answered on 6 Mar 2019:

      Well that comes down to the actual costs involved in finding a drug with a desired effect. According to the statistics, only 3-4 for every 100 tested drugs end up past the clinical trials and from those 3-4, only 1 in the market. So, as you can see, the hit rate is only 1% or so. This means they have to make up the costs incurred on researching the 100 drugs and that is possible only if the price of the 1 successful drug is high enough. In addition, the drive for profit also raises the price of the drug. Hope it helped