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There appears to be significant profiteering by some unscrupulous investors. One particularly egregious event was an enormous increase in the cost of some drugs (5,000%) by Turing Pharmaceuticals. Turing Pharmaceuticals acquired the rights to Daraprim in August. 

The drug treats toxoplasmosis, a parasitic affliction that affects people with compromised immune systems.
After Turing's acquisitiona dose of Daraprim in the US increased from $13.50 (£8.70) to $750.The pill costs about $1 to produce, but Mr Shkreli, a former hedge fund manager, said that does not include other costs like marketing and distribution, which have increased dramatically in recent years. Mr Shrell, it should be noted has been indicted for security fraud in an unrelated situation.
This indictment had nothing to do with the pharmaceutical furor. and 
revolved around a different alleged incident ( Ponzi Scheme.)

While the specifics of this case are unique and skewed significantly, 
other Pharma companies are increasing prices to offset hard bargaining
by health plans and CMS in the wake of the Affordable Care Act.

Health financing, like other industries has it's "bad boys" and it deserves 
careful scrutiny to guard against rampant raping of the federal and state 

Despite over-regulation and micro management of changes fostered by 
the affordable care act, profiteers and adventurers find ways to bilk the 
“Some of these companies seem to act more like hedge funds than traditional pharmaceutical companies”
Meanwhile:The California Legislature has passed AB 463,

Pharmaceutical Cost Transparency Act of 2015 2016

 The Legislature finds and declares all of the following:
(a) It is the intent of the Legislature to make information available to the public about the cost of ultra-high-priced pharmaceuticals, in order to make pharmaceutical pricing as transparent as the pricing in other sectors of the health care industry.
(b) To fulfill this goal, the Legislature finds that there should be annual cost reporting on the most expensive drugs that would be of use by policymakers, government agencies, and others to understand costs for these important products.
 (a) Each manufacturer of a prescription drug, made available in California, that has a wholesale acquisition cost (WAC) of ten thousand dollars ($10,000) or more annually or per course of treatment, shall file a report pursuant to this section on the costs for each qualifying drug.  Further details here

Runaway Prescription Costs

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