Tag Archives: payor

Why Do Drugs Cost So Much?

by Chris Adams A response to A Tale of Two Drugs, an article by Barry Werth published in the MIT Technology Review Oct. 2013 Drug prices. Why are they so high? In a recent article for the MIT Technology Review, Barry Werth considers the pricing of two recently developed and very expensive drugs. The first drug is used for cystic fibrosis and costs almost $25,000 per month. The second drug is used for metastatic colon cancer and is priced at $11,000 per month. So why are these drugs so expensive? Why do companies charge so much for their drugs? The simple answer is that they can and so they do.