1. Most drugs are generics and cost only a few bucks per month. This can add up if you need to be on a lot of medications, but even being on 20 meds generally costs less than your cable bill, smartphone bill, or especially your pack a day cigarette habit. The really expensive meds are the exception rather than the rule and are rarely first-line for anything.
2. There is an insane amount of regulation of the drug companies- ever heard of the FDA? Or PhRMA? Also there are additional taxes on drug makers buried in the Obamacare text. I know, I have read the entire thing, unlike Nancy Pelosi and most of Congress who actually voted it into law.
3. Every new drug has to go through over a billion dollars' worth of clinical trials. Many drugs go through trials and there is some issue found, so they are never brought to the market. However the trials still have to be paid for even if they don't pan out. There is also a large army of sleazebag lawyers hunting for The Next Big Drug Lawsuit to make themselves insanely rich to help out the little guy so if you have ANY postmarketing issues, you are liable for many more billions in legal costs. That money has to come from somewhere.
*Most* of the people I see whining about drug prices are people who spend much more on cigarettes, booze, lottery tickets, and at the casino than their handful of generic drugs costs. They gripe endlessly about the $8/month of generic HCTZ/lisinopril and simvastatin for their blood pressure and cholesterol but smoke two $6 packs of Marbs a day. You unleash a massive expletive-laden tirade if you dare to mention that, though. These are also nearly all Medicaid patients who pay $0 to see the doc and show up an hour late demanding immediate treatment.