Regardless of whether the government currently funds drug R&D, your idea sounds a lot like government-funded R&D, thus my question of how it would be different.

1) We can dictate price: $0.00. 2) We can decide what drugs to develop (i.e. do we need Ibuprofen, Advil, Tylenol, This, That, or do we need the best). 3) When the price is $0.00 we ensure no one dies because they can't afford a drug. 4) When the price is $0.00 well physician can focus on providing you with the best drug, and not the one they get kick back from.

Shall I continue?

This idea does not stop at Pharma. Wherever Gov fails, we can try this.

Sounds just like a government medication R&D scheme plus a government medication purchase plan.

tons of drug research is abolutely publicly funded, then often sold off to private companies for pennies...

Well then the matter is even worst than I suspected. I am funding drug research just so the government can sell it to a private company that will charge me 100x. Clearly this is rapacious.