Well the biotech industry already has negative NPV from an overall investment/return perspective. So in reality, drugs should be MORE expensive in order to give a return at all.
What the dear old senator fails to appreciate is that actions like his prevents investment, and the next wonder drug. Pharma already has to put up with limited patent life, they should be able to generate some kind of return.
Key point to remember - the average Joe shouldn't have to pay for the drug, it should be the PBS or equivalent. And they will only pay a price they think it's worth, and not a cent more.
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