Mass. Attorney General Healey threatens to sue over high drug prices

Gilead Sciences Inc. makes two hepatitis C drugs, Sovaldi and Harvoni, which work but which cost $84,000-$94,500 for a 12-week treatment.  10% of hepatitis C sufferers, the most severe cases, are treated with these drugs.

What is unusual is that she is threatening to invoke a consumer protection law that has never before been applied to an established drug price, only to changes in prices.

These drugs certainly are too expensive.  I think we should ask ourselves why.  Some informed observers say that the FDA drug approval process, where it can easily cost $100 million and take many years for approval, costs which the drug company must eat if the drug is not approved, is the root cause of sky-high prices.  There are two reasons for this:

1. The costs are so high that drug prices need to be high to recover those costs.
2. The costs and delays create a barrier to entry that restrict competition.

In the meantime, people die.

Here is the article:  (click on the image.)