First they say healthcare is expensive because of the research costs involved, why does healthcare research also require govt funding too?
Drug companies do some basic research too, but their focus is on applications like drug development.
There's a large but not complete overlap.
Think of it like lasers. NIH is where you might see someone do research into the theory of light. The commercial medical industry is where you might see research into creating lasers of a particular colour, power, etc.