From Dorgan’s rather convincing explanation of the problem:

– Drug prices increased 9.3% this year, during a period of national deflation.

– The industry creates demand for drugs through ubiquitous advertising, and then increases prices for American consumers.

– Americans pay 3 to 4 times more for brand name drugs than consumers in Europe and Canada.

– A substantial number of the drugs developed and produced by the pharmaceutical industry were developed at the National Institute of Health.

via Wonk Room » Dorgan’s Drug Importation Legislation: A Round About Way Of Lowering Drug Prices.