A few weeks ago, I blogged about drug over pricing. A drug company had gotten FDA approval for a medication previously sold by compounding pharmacies for $10 per dose. They were going to sell this medication at $1500 per dose. This was a drug for preventing premature births.
Well guess what - the drug company is responding to critics and has reduced the price from $1500 per dose to $690 per dose. Still a hefty price but its nice to see a significant price reduction.
But then the business question comes in - what was their profit margin on the drug where they had such a cushion that they could reduce the cost by so much. This is clearly too much for me so early in the day but even without doing the math they were making a lot of money off this drug.
The real point of this is in the closing lines of the article: "Stay tuned: this battle is far from over and, hopefully, it will bring greater attention to the overall issue of drug pricing."