You only addressed part of the problem. The OP said IP.. so we're talking about trademarks in addition to patents.

The pharma companies would lose the ability to patent a drug.. which means they would keep it a tradesecret instead. So generic may or may not be able to be produced.

Second: without trademarks, pharma companies could invent Prilosec... and I (and anyone else) could sell a sugar pill named Prilosec. Or rat poison named Prilosec.. or any number of other items named Prilosec.

This is not a result that is in anyones favor.