Koemiko
Typically, the company that makes the drug keeps the rights to the formula for about seventeen years, which tends to determine the initial price; then the formula is released and allowed to be made as a generic, which is where the cost of making it and the demand tends to come into effect.
Also, the Ophran Drug Act means that they've got incentive to research drugs for not-so-common conditions.
While what you said is more or less accurate I'm not sure what your point is or how it relates to what we were saying about companies price gouging, sometimes in the extreme, while always using the mantra of "we have to do it for our R&D money".
A drug patent in the US lasts 20 years but is issued before clinical trials begin. From some stuff I read the net effect of on market time is 7-12 years. Though I'm sure it is longer in some cases. You also have manufacturers coming out with new variants of their drugs (time release, slightly different combo etc) to have a 'new' drug once the original one becomes available as generic.
The orphan drug act applies (mostly) to diseases with under 200k instances in the USA. And yes, it provides some incentives to encourage a company to produce drugs for such diseases. But the stuff we were talking aout - HIV / many types of cancer are not rare diseases as defined by that act.
(Instances in the USA)
HIV 1,300,000
Prostate Cancer 432k
Lung Cancer 415k
Colorectal Cancer 270k
Breast Cancer 386k
The argument isn't that drug companies should not be able to patent their work or try to turn a profit on their efforts.
The argument is they take advantage of the situation and gouge the hell out of the public for every dime they think they can squeeze out of them. Current laws / rules would be okay if companies were not abusing them.