Final answer:
The contrast between Big Pharma profits and drug development costs is significant due to the high risk and expense of R&D, as well as competition that can limit profits after successful innovation.
Step-by-step explanation:
The question addresses the contrast between the profit Big Pharma companies make and the cost of drug development. Drug development is an expensive and risky endeavor, costing on average $800 million and extending over a decade. These costs are primarily due to the extensive research and development (R&D) required, as well as the safety tests before a drug can be brought to market. Notably, if R&D fails, a company can suffer significant financial losses and possibly face the risk of going out of business.
On the other hand, if a drug is successfully developed, it becomes subject to competition, where rival companies may copy the innovation without incurring the same developmental costs, thereby limiting the original company's competitive advantage and profits. Big Pharma companies typically justify their high profits by pointing to the high cost of R&D and the need to cover failures and fund future research. The profits also reflect the company's success in the market and its ability to capitalize on positive externalities which include the wide-reaching benefits of a new drug. It remains a contentious issue whether profits or public benefit should drive pharmaceutical innovation, with some suggesting that government subsidies or direct involvement might be necessary to prioritize the public interest.