Commerce Department study of Pharmaceutical Price Controls in OECD Countries finds that price controls decrease available funding for R&D.

Price Controls Are Widespread

The drug price regulatory systems of 11 OECD countries were all found to rely on some form of price controls to limit drug spending.
(I.e. reference pricing, approval delays, restrictions on dispensing and prescribing, and reimbursement)

Without Price Controls, Revenues Available for R&D Could Be Significantly Higher

The study found that by discouraging free market prices, those countries with price controls stifle research and development of new medicines that would otherwise exist in a competitive market. The diminished revenue returns range from $18 billion to $27 billion annually.

Higher Utilization Rates of Generic Drugs at Lower Prices in OECD Countries Offer Potential Savings

Higher utilization of generic drugs at lower prices could result in significant savings (from $5 billion to $30 billion annually) to OECD countries. This suggests that if prices of patented drugs were to rise to free market levels, the additional costs to OECD countries could be offset by a more competitive generic market.

Higher Revenues Would Mean More Research and Development of New Drugs

In restricting the return on revenue for pharmaceutical companies, the price controls used in the OECD countries also reduces available global pharmaceutical R&D below what would otherwise be in a free market. The study found that this reduction ranges from $5 billion to $8 billion annually or 3 to 4 potential new molecular entities annually.

US Consumers Would Benefit From the Elimination of Price Controls Abroad

There is a potential benefit of $5 billion to $7 billion annually to US consumers if drugs were developed and marketed in other countries without price controls. The increased competition in the US market created from the deregulation of price controls in other countries could have an effect on US prices in the long term.