Unfortunately there's a lot of truth in that statement, especially in the case of rare disease. It's really difficult to convince a company to spend billions to develop a treatment that will only cure 1 in 100,000 people without letting them charge an arm and a leg, and giving them a very long exclusivity deal so they can continue to charge high prices. So much of that cost to develop is due to the dozens of other failed drugs and formulations they tried on their way to success.

I don't have a solution for the problem, and I'm always a little suspicious of anyone who claims it's easy to solve. I think the UK has a decent idea, the NHS basically decides if the cost of a drug will be covered by insurance by comparing the expected benefit and the current cost. If the ratio is too skewed, they refuse to cover the medication. In theory, this should be an incentive for a company to charge less. In practice, it leads to some companies choosing not to market in the UK.