Fresh Air His Cancer Meds Were Nearly $1K A Pill. How Did That Happen?
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May 14, 2025 
David Armstrong, a Senior reporter for ProPublica, dives into the troubling world of the pharmaceutical industry, spotlighting the exorbitant cost of the cancer drug Revlimid. He discusses how this $1,000-a-pill treatment only costs a mere 25 cents to produce. Armstrong reveals the devious strategies companies employ to maintain high prices and fend off competitors. He also sheds light on the hurdles patients face with insurance denials for necessary treatments, exposing the systemic flaws in the healthcare system.
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Strategic Pricing Based on Patient Profiles
- Celgene initially priced the drug cheaply to avoid protests from activist groups.
- They later raised prices sharply, presuming cancer patients would pay any cost.
Revlimid Derived to Secure Patent
- Celgene couldn't patent the active ingredient thalidomide because it was old.
- They developed Revlimid, a modified compound, to gain strong patent protection.
Huge Price Markup Revealed
- Revlimid launched at $55,000 per year, far above analyst expectations.
- Manufacturing cost remained about 25 cents a capsule, exposing a vast markup.
