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Everybody wants to maximize the value of their investment, or product. To the consumers affected so much by the high price, this comes around as greedy. While
by AngeloAnolin 10y ago
Everybody wants to maximize the value of their investment, or product.
To the consumers affected so much by the high price, this comes around as greedy. While to the business themselves, they see this as good business incentive.
Of course, there are other factors:
+ economics of how much people are willing to pay for, the scarcity of the product (and resources used to build it)
+ the derived (and perceived) value of the people taking the medication
+ politics and lobbying cost
In the end, it all comes down to the business' bottom line and the consumer's capacity to pay. It is very probable that the pharmaceutical companies have done a lot of calculations to ensure that their price point would be at the stage where they have balanced everything to lean on profit for their side.