Pharmaceutical drugs?

Question

How is the price for pharmaceutical drugs determined? Do they go by how much it cost to resurch the drug and manufacture it or what?

Answer 1

they factor in the cost of materials, research, development, marketing, transportation and many other things.  then they raise the price to something with a reasonable profit margin. then they raise it even more just cause they can.

Answer 2

They are based upon safety and effectiveness of the drug, drugs that are shown to be more effective than existing drugs are priced higher. If there are no comparable drugs on the market, the price is determined by manufacturing cost and the price of the drug in other countries. Along with the answer above.