Say I run 10 trials that cost 10m each but only one of these finds a drug that works. How much did the trial cost to discover that drug? How much did it cost to discover that drug? 10m? 10*10m?
It's worse than that. Say 100 companies run trials on their drugs, and only one succeeds, and you buy that company. You have to look not just at the company that ends up with the drug that works, but the whole ecosystem of small companies that are doing the exploration, hoping to hit it big and cash in by being bought.