[nicktelford]

You're forgetting an important factor. Competition. Pharmaceutical companies operate in an environment with very little competition. Obviously, the purpose of patents are to grant a limited monopoly in return for the innovation, but when that innovation is the only viable treatment for something, the manufacturer can just name a price and everyone has to live with it.

The problem is that the US healthcare system isn't a capitalist system; it's an oligopoly.

[userulluipeste]

"the manufacturer can just name a price and everyone has to live with it"

Considering the context of the discussed business and that the offer is not always just something optional, I might add "or die with it..."

[refurb]

There isn't any competition? Ask Vertex about that! They just launched a new HCV drug that was expected to bring in several billion dollars per year of revenue at its peak. Now? It probably won't pass the $500M mark because other companies are bringing in competing therapies.