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In a capitalist market, the goal of a business is to sell a product to satisfy demand. In this context, a company's objective is to maximize profits. However, there are industries where the social good should take precedence over profits and the Pharmaceutical Industry is an example of such an industry.

Recently, an incident of arbitrary pricing by a pharmaceutical company has come to light. After years of research, the concerned company released a medicine for the treatment of a rare disease. It holds the patent for the medicine and has spent considerable R&D resources to produce the medicine. But the extraordinarily high price fixed for the medicine has not only dashed the hopes of patients suffering from the rare disease but has also shocked the conscience of the public at large. However, there are also some who are arguing that forcing the company to cap the price of the medicine will disincentivise pharmaceutical firms to conduct research and produce treatments for rare diseases in the future.

— Sudipa Dutta · AIR 41