When rationalizing their lofty price tags, one of the most common reasons pharma companies cite is that a high price is needed to make good on the money invested in research and development. According to a study, the amount of money spent on research and development (R&D) for new pharmaceutical drugs doesn’t correlate with high prices for the medications.

Pharma companies are flush with cash and looking to make deals, but there are still a lot of small biotech companies that don’t have enough money to launch their products entirely. It seems that pharma is only interested in drugs that have the potential to sell hundreds of millions as opposed to small products that may only sell to a limited audience.