This is true, but it should also be pointed out here that Universities are where almost of all the initial research into finding and vetting candidate drugs happens, mostly on grants from the government. On the whole that is enormously costly, and the drug companies only step in to develop the drug once the lab tests are promising.

It used to be that all of the profits went to the drug companies, but more recently Universities have started to claim a portion of the patent royalties, and thus the profits. I believe the first big example of this is the University of Wisconsin's royalties on Warfarin (blood thinner used as medicine in humans, and in large doses as a rat killer).