“The issue is a government with the power to destroy an entire market sector of an advanced economy.”
Most expensive new prescription drugs are generally not market economy products.
A drug priced at $1 million for a needy person might not get a single market economy buyer.
I don’t know that the situation you cite is a rational one for government to take.
When we collectively spend $1mil (a month or year) for a drug that has no market, we ensure any such collective cannot survive.