This isn&#x27;t pure capitalism.  This is a result of what Mises called &quot;license monopoly&quot;.  See &quot;The Monopolized Commodity&quot; under <a href="https:&#x2F;&#x2F;mises.org&#x2F;library&#x2F;monopoly-prices" rel="nofollow">https:&#x2F;&#x2F;mises.org&#x2F;library&#x2F;monopoly-prices</a> for more discussion of this.<p>&quot;Under monopoly, a greater part of the specific factors of production concerned will remain unused. The common feature of all instances of monopoly prices is that part of the supply, which under competitive conditions would have been offered on the market, is withheld from the market. The most spectacular and objectionable instance of this withholding is the purposeful destruction of the commodities concerned. It happened mostly with consumers’ goods (e.g., coffee) but sometimes also with factors of production.&quot;<p>There are other sources of this drug, notably foreign production, but they don&#x27;t have the proper licensing.  Thus you get a license monopoly.  There are a lot of drugs developed overseas that are effective but they are unknown in the U.S market because they are not approved by the proper license monopoly granter.  Under pure capitalism, these products would be allowed on the market and independent rating agencies would ensure their quality.