What second or third order effects might happen? I’m not saying the status quo is the only reasonable equilibrium, but if you take the profit motive out of something (anything), I worry that you’ll get fewer of society’s resources directed towards that area. Maybe that’s money, attention of the brightest/most creative thinkers, willingness to do the outright drudgery required to invent, perceived status of the field, etc.
If you want a lot of drug research, you probably want to ensure that successful drug research is lucrative. (Maybe less than today, maybe making unsuccessful research or negative reproduction more lucrative than today.)