Should they be able to charge whatever they want when they have no competition? Isn't that against the whole free market ethos?
The logic being followed by this particular pharmaceutical company is that because it's a niche market the impact of these large price hikes is minimal. However, the impact is not minimal for those that depend on the drug, who are getting stiffed, either left with prices they may not be able to afford or increased insurance costs (either paid by the individual or their employer).
There should be a cap on behaviour such as this, such as prices cannot increase 50% above inflation in a single year. Details would need to be worked out but at least controls such as this would give the market time to respond, bringing in new competition, etc...
The logic being followed by this particular pharmaceutical company is that because it's a niche market the impact of these large price hikes is minimal. However, the impact is not minimal for those that depend on the drug, who are getting stiffed, either left with prices they may not be able to afford or increased insurance costs (either paid by the individual or their employer).
There should be a cap on behaviour such as this, such as prices cannot increase 50% above inflation in a single year. Details would need to be worked out but at least controls such as this would give the market time to respond, bringing in new competition, etc...