You're thinking of helium-3. Yes, you need to breed it in a reactor or mine the moon. Deuterium can be extracted from water by physical or chemical processes that are relatively cheap. ($28 a pound).
Where did you get this value. The price of heavy water is several times this and after you break out the Deuterium you then have to multiply it by 4 and add the energy costs. That would make it about $1000 per pound?