You have black and white beliefs in a grey world.
Yes, capitalism has some bad side effects. That is not a reason to throw out the baby with the bath water.
So, my question for against your statement is, if IP laws changed, why do you think that drug regulations (and everything else that drives up cost-to-market) would remain the same?
If another company could just start making that same drug as soon as it is proved safe and effective they could bypass over a decade of development costs that the other company ate(typically for many drugs since most fail so more like 4+ man-decades of development and trial costs). They could sell the drug for purely the manufacturing costs and have an equivalent product.
No one with capitalistic motivations would privately fund drug research in a market like this because it would make no sense.