Forbes – Could High Drug Prices Be Bad For Innovation?

Policymakers are scrutinizing high prices for specialty drugs like never before. Gilead’s Sovaldi at $84,000 for a treatment course is in part to blame — or credit — for this, but so are Vertex’ Kalydeco, Merck’s Keytruda , and a series of other six figure drugs.

The pharmaceutical industry has responded in a predictable way. High prices are needed to fuel the fire of innovation they explain. True. Absent a potential return, investors would certainly stay far away. But what about the follow on question? Just how high do prices need to be? When does the potential to profit exceed that which is needed to drive innovation and pervert the market?

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