20 June 2019 - The other day I was reading a piece on reframing the conversation on drug pricing. I came across the following sentence: "Prices for drugs must recover research and development costs and encourage investment in innovation."

The pharmaceutical industry often explicitly propagates the recoupment of investment line to justify its price setting. And implicitly, the industry sometimes defends its price setting by referring to the need to have resources to invest in future research and development.

There's no denying the pharmaceutical industry invests a tremendous amount in research and development. And, to be a going concern drug companies must have sufficient revenue to recoup their costs, research & development and otherwise.

Read Forbes article