Essentially, price controls are a non-starter, and negotiating with the pharma companies to reduce prices 'because I asked so nice' didn't work, now he's opening the door to buy the pills from somewhere WITH price controls. It's no admission that socialized healthcare is a better system, but it is indicative that the patent laws which grant essential monopolies to drug manufacturer's are broken where there are no price control provisions in place.
Maybe it''ll work as a leverage point with the the pharma companies... it probably won't. We should still fix the patent laws and work on some kind of pricing control scheme.
We need a agency to oversee drug pricing and determine a fair price for a drug based on the development cost and market. They would then set this price and the drug manufacturers would have to sell at that price. The patent life is 20 years but it needs to start at the point the drug is approved, not at the point the molecule is discovered and patented. If you give a company a price control that limits the amount of money they can make on a product, you need to ensure them a market for that product otherwise there is no financial incentive to fund the testing. We also need to enforce the right of the drug manufacturer to sell the drug worldwide at the pre-determined price of the government agency. If a foreign government places further restrictions on the price of the drug, tariffs should be declared on goods imported from that country. A fund should be set up to compensate drug companies for selling at below cost to underdeveloped (poor) nations.
This is what is fair and would allow innovation to continue while spreading out the cost of research and testing over a longer period of time.
Instead of a company spending $5 billion on testing a drug for 8 years, then having only 12 years left to sell it (which is one of the main reasons behind the rapid widespread advertising and high prices), they would spend $5 billion for the drug development and have 20 years to recoup the investment. The price they would need to charge for the drug to maintain a profit would be much less and the revenue, which supports the advancement of new drugs, would be less volatile.
I have not heard of anyone proposing what I just outlined so I am probably full of shit.
An alternative would be for drug testing to be done by the government and ownership of the drug by the government, allowing the government to provide the drugs to the population for a low cost. I don't know how you would establish a price in other countries or recoup the government's investment.