I can't help but take this opportunity to add my own little pharmaceutical horror story, although it doesn't involve me personally. I live in Missoula, Montana, and one day in my high school chemistry class, we were visited by a guest lecturer from Butte, a nearby city. This speaker was an organic chemist by the name of Andrea Stierles, and in addition to teaching, she has dedicated her life to finding new kinds of medicine.
Have you ever heard of a drug called Taxol? It's a powerful cancer fighting agent, and it happens to be possibly the most effective treatment of breast and cervical cancer we have. However, the price tag is rather intimidating; full treatments can cost anywhere from $20,000 to $80,000 last I heard, depending on how much is needed. This is because the drug has to be extracted from the bark of a yew tree, which is an almost extinct species found in the northwest US and Canada. Drug companies have special greenhouses for harvesting Taxol from these trees, but it simply takes too long, and there's not enough for everybody. With the drug being such a premium, they can charge whatever they want for it.
Here's where it gets interesting. Andrea hunted around the northwest taking samples from yew trees, and in Glacier park she found something. In a bark sample the size of a thimble was a special fungus, and it turned out that it could produce the exact same chemicals by itself. Before long she isolated it, and it's even named after her. She told our class, face to face, that with this fungus and a simple fermentation process, Taxol would be as easy and as cheap to manufacture as vitamin C.
She took this fungus and showed it to Bristol-Myers Squibb, a leading pharmaceutical company. Eventually they wound up with the commercial rights to the fungus and the process. So why don't we have dirt cheap Taxol? Because they buried the whole thing. They don't want to make it the new way. After all, who would want to stop selling doses at 20 grand a pop?