The way the system is set up now, there would be little incentive to make pharmaceuticals without patents. The R&D cost is insane, so to be profitable, pharmaceutical companies need exclusive rights to their drugs.
Bearing that in mind, I have no reason to believe a fully state-funded pharmaceutical system would be impossible, tied into healthcare. However, to make people complacent with that, it would have to be unbelievably transparent. Many people fear the idea of the state designing and providing them with drugs.