I read a liberal blog where the author was outraged that drug costs increased 9% in an environment where we have very low inflation. Of course, the blogger complained about “obscene” profits and sticking it to folks prior to the nationalization of health care.
The reality is that drug prices are driven by market forces. It comes down to supply and demand.
Next, companies exist to generate profits for investors. Without investors, these companies wouldn’t exist. If there is no reward for taking risks, then people will do something else with their money.