First, let me say that drug company profits are obscene, no doubt. There are however, a couple of price factors that haven't been mentioned in this thread, I think...first, there are commissions for the sales force. Those well-dressed folks you see rolling suitcases into, out of and around hospitals and doctor's offices are the salespeople...they make a very good living passing out all those samples and swag to your docs. Second, advertising costs...all you have to understand that these companies are spending a TON on advertising is watch TV for an hour...

That brings us to the costs of insurance and liability, as well as administrative costs, including truly obscene CEO salaries....I'm sure I'm forgetting something, too...such as charitable giving. I don't know about any others, but Eli Lilly has given tens of millions to religious institutions, generally mainline Protestant churches, much of it for youth work.

None of this justifies the prices we have to pay, but I do believe that we need to think of all the costs involved before we start claiming profit margins of a half-million percent.

Old numbers here, but illuminating: http://www.actupny.org/reports/

DJ