Part of the problem is that "smart" people, especially technical and scientific people, refuse to believe that prices aren't based on logic and hard facts, but the circular-definition that is markets -- the price is what it is, because people pay it.

Let's call it the "religion of tangible explanations." People refusing the more correct although ambiguous explanations, in favor of the BS explanations, just because they have a bunch of tangible logic and reasoning attached to it that makes you feel better.

> government-backed insurance

Can you therefore explain the cost of health-care in the UK on the National Health Service?

I'm from Australia, so I think our system is similar (single payer type system). Our government won't be offering this drug in the short term. If it is really this good, they will negotiate a deal over time.

The advantage of that system is the government can give the company the choice: a) Sell to us for $x, and patients can use for no/low cost b) Go direct, and try to convince patients to pay $y themselves

This gives a pretty strong incentive for x << y, and avoids a lot of advertising expense.