This also happens in the case of Shkreli-types. Part of the problem is that the market size for the drugs tend to be small, but the R&D and regulatory costs are

This also happens in the case of Shkreli-types. Part of the problem is that the market size for the drugs tend to be small, but the R&D and regulatory costs are high enough to keep out competitors so you have these "orphan drug" companies able to jack up prices even in the absence of patent protection.