Why government not focusing to provide cheap generic medicine
In Canada, the government has made significant moves to reduce the price of generic drugs. As of April 1, 2018 the price of nearly 70 commonly prescribed generic drugs dropped by an average of more than 40%. Many of those drugs are now priced at only 10% of the equivalent brand drug. More information can be found in this joint statement https://www.newswire.ca/news-releases/a-joint-statement-from-the-pan-canadian-pharmaceutical-alliance-and-the-canadian-generic-pharmaceutical-association-671651014.html
The pharma company takes the risk to development new medicines. This is costly as they have to hire expert scientists and not all ideas lead to products. For this governments offer them patent protection for a certain number of years, where it is not allowed by competitors to release generic medicine, based on reverse engineering. If this temporary protection would not be allowed, pharma companies lose the motivation to invent, and required new medicine will not be available.
On the other hand, certain diseases may affect more low income groups. Here exist the risk that pharma industries will not invest the required resources to invent efficient medicine. Here governments, including United Nations, have to become active.
On Foreign Monopolistic Tendencies
Domestic private companies leave the generic drug business because of low margins. Soon, few to none exist. Then, government supported public companies as in China, swoop in with exorbitant prices.
This is happening now with commonly used penicillin, doxy-cycline and heparin. Not too difficult to understand.
17 months ago