Why drugs cost so much, 101: Medicine monopolies
An Arm and a Leg
An Arm and a Leg
4.8 • 1.1K Ratings
🗓️ 9 April 2026
⏱️ 36 minutes
🧾️ Download transcript
Summary
We’re always asking: Why do drugs cost so freaking much?
And it’s a complicated question. There are a bunch of reasons — to be sure. But in our reporting over the years, like our stories on insulin and tuberculosis drugs, experts cited one big reason over and over again:
The pharmaceutical industry wages sophisticated legal battles to keep monopoly control over their best selling, most lucrative drugs — blocking generic competition, and increasing their prices along the way.
How did it come to be this way?
In this first episode of a new series – what we’re calling An Arm and a Leg 101 – we’re doing a crash course in the history of the drug patent system.
And the rags-to-riches story of one amazing guy is going to help us do it.
Al Engelberg got schooled in the Art of the Hustle at a young age, collecting dimes at an illegal bingo game on the Atlantic City boardwalk.
Later, he’d put those street smarts to use as he sat at the negotiation table in Washington D.C., hashing out the details of a law that would usher in the generic drug industry as we know it. Then made millions from the rules he helped write.
And as he admits, his legacy is mixed.
On the one hand: The rules Al Engelberg helped write — a grand bargain between generic drugmakers and patent-holding brand pharma companies— unleashed the power of generic drugs to save Americans money.
Nine out of ten prescriptions written today get filled with a generic.
On the other hand: In the process of making his fortune, Al Engelberg discovered loopholes, gaps, and perverse incentives in that grand bargain.
Gaps that allowed brand and generic drugmakers to profit by keeping generics for many hit drugs off the market.
So we now spend more than ever on medicine — and more than 20 percent of Americans report skipping their medication because they can’t afford it.
Al Engelberg, now 86, has spent the last 30 years — and millions of his own dollars — trying to close those gaps.
“I live in a world — a pharma world — where half the people think I’m dead, and the other half wish I was,” he tells us.
You can read more of Al’s story — plus his prescription for fixing the crisis of high drug prices — in his book, Breaking the Medicine Monopolies: Reflections of a Generic Drug Pioneer.
And you can hear our earlier reporting on drug patents here:
John Green vs. Johnson & Johnson (part 1)
John Green vs. Johnson & Johnson (part 2)
The surprising history behind insulin's absurd price (and some hopeful signs in the wild)
Here's a copy of this episode's transcript.
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An Arm and a Leg 101 is made possible in part by support from Arnold Ventures.
See omnystudio.com/listener for privacy information.
Transcript
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| 0:00.0 | Soundside brings you beyond the headlines with news and conversation rooted in the Pacific Northwest. |
| 0:07.5 | I'm Libby Dankman. Every week I sit down with local journalists for SoundSide's front page, |
| 0:12.6 | where we give you a shortcut to understanding the latest news and cultural moments and how they affect us here in the Puget Sound region. |
| 0:19.8 | It's all here on Sound Side, on the radio or streaming Monday through Thursday at noon and 8 p.m. on KU.O.W. |
| 0:26.3 | On the KUOW app or wherever you get your podcasts. |
| 0:30.3 | Hey there. |
| 0:31.3 | We are kicking off a new series here. |
| 0:33.1 | We're calling it an arm and a leg 101. |
| 0:41.2 | You know, we have spent years reporting on two huge questions. |
| 0:44.1 | Why does health care cost so freaking much? |
| 0:46.9 | And what can we maybe do about it? |
| 0:52.2 | And we've been chasing answers one story, one question at a time. |
| 0:56.3 | And now we're pulling together some of what we've learned, |
| 1:04.7 | digging a little deeper, going a little broader, starting with why so many drugs cost so much. You know, one of the first questions I ever asked here, one of our first stories, was, how can |
| 1:12.0 | insulin be so expensive? Like, wasn't it discovered in the early 20th century? Shouldn't it be a |
| 1:18.5 | generic drug by now? You know, cheap? And part of the answer I got was insulin has been |
| 1:26.9 | transformed since the early 20th century. |
| 1:30.2 | A medical researcher named Jing Luo told me today's insolins are a long way from what we had |
| 1:35.9 | 100 years ago. |
| 1:37.3 | They've been really modified at a molecular level. |
| 1:40.5 | It's cool stuff. |
| 1:41.3 | It's super cool stuff. |
... |
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