Talk about profit margin
 

A cure for Hepatitis C

Costs the company 250 bucks for a course of treatment. Costs the patient 84K

$1,000 Pill For Hepatitis C Spurs Debate Over Drug Prices : Shots - Health News : NPR

you are forgetting the R & D cost for the drug. Also, don't forget about the cost of all the R & D cost of the drugs that did NOT make it.

compare it to mechanic work.

why does the mechanic charge so much per hour? mostly overhead costs but also for his extensive experience and training.

This was my first thought, and it certainly has merit, but the CEO's response seems to be more in line with the cost being the maximum that they perceived what the consumer could bear. He better hire a PR company quickly.

Free enterprise isn't usually free...

R & D is the biggest part of that, as ben mentioned. It takes millions and millions to research, develop, and test drugs like that. Just the trials alone are a staggering cost.

^ RE: the article and PC's post, I don't think we're getting the full story. Cost of manufacture is much different than the entire cost including patents, R&D, etc. They might make the pills for $250 a pop but also have to pay $600 a piece to the company who owns the patent. I'm very skeptical of the quotes from the president too, seems a bit cherrypicked.

Not to mention the cost to Americans to subsidize selling it cheaper in Africa and India.

None is madder than he is that the company can produce something for $250 and sell it for $84,000 did his speech writers throw that line in there.

Did you read my post? Also its not $250 to 84k, it would cost 21k to produce it, if you extrapolate the cost per pill to a factor of 84, as the article cites.

No mention of development costs by anyone involved with the company. Why not? I'm guessing it's because the development costs weren't actually that expensive. If they were, they'd have brought them up. Seems like the entire rationale for the cost rests on the huge impact the cure will have. Seems roughly analogous to helping up your neighbor who trips over a crack in the sidewalk for free. But if the same neighbor is hanging off a precipice and you can help, charging $1 million for your hand because the impact would be so much more significant.

I wanna know whats in this drug that can cure hepatitis and not other virus?

I can hardly wait for the tv commercials . . .

The original post had it at a cost of $250 for the battery of pills that sell for 84K. I would still bet that no one is madder than you know who.

You're correct, my bad. I misread the article.

They may also be contractually obligated not to talk about it. However I imagine you and the others here are mostly still correct.

Who?