Since we're discussing nationalisation of drug development, one more less extreme idea that I think needs more air-time: The creation of government-issued prizes for drug discovery.

Here's how it goes- Government X issues a prize of $10B to whichever company comes up with a new drug for, say, blood pressure. (10B being about as much as a company would get in revenue for a blockbuster drug.)

Companies submit their drugs, which are then tested independently (see http://www.alltrials.net/ if you want to know why that's important), and if they are found to have passed the requirements in a strictly yes/no manner, they get the money.

The IP for the drug then passes to the government, which can then manufacture and sell it at generic rates.

Like everything there are down-sides to this method, but it would sidestep a lot of the issues around companies' incentive alignment with healthcare.