If you're the only customer for their businesses, yes you can waive a magic wand and say now you'll get 40% less and deal with it. Especially if you're the government and it's a law. It's like Walmart with their suppliers. If you're the biggest baddest around you can kinda do what you want.
Certainly it will have impacts on R&D but are you suggesting that new drugs won't get created anymore? Don't drugs get created all throughout the EU?