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" ... Pricing is also playing a key role in deciding which therapeutic areas to invest one’s resources. In the past, big pharma companies would target drugs that would be prescribed to tens of millions of people around the world at a relatively modest price. Profits were made on volume, not prices. However, a recent shift in this landscape has occurred. Biopharmaceutical companies have found that a new medicine, which targets small, niche patient populations, can command a high price as long as it truly is life changing for the patient or even is curative. Furthermore, payers will accept a high price for such a drug if it can, on balance, result in overall savings to the healthcare system. While such small market drugs are unlikely to generate the sales seen previously with blockbusters like Lipitor (cholesterol lowerer) and Januvia (diabetes), they can be highly profitable thanks to favorable pricing and much smaller sales/marketing spending. ... "