I'm still not getting how the funding of trials that don't succeed is supposed to happen. Individual researchers don't have the money to fund a serious drug trial on their own. So even if someone put a prize of 100 trillion dollars for curing pancreatic cancer, and you had an idea for a drug that you think can easily do that, but you'd need 10M dollars to actually synthesize and trial it, how do you go from here to there? Sure, you could sell equity in your prize, but how do you convince people to buy it?

Whatever you do, you can't get around the fact that the people with medical knowledge need to convince the people who have the money to invest in them before any research can take place. There is simply no way to get rid of the pitching to bureaucrats step here, not even in the most idealized societies - research just needs too many resources for any one individual to control.