Well, there is no reason why this drug should not be competing with the other already existing drugs.
If you don't put any market competition in place, if you basically agree to pay for any drug that does not represent a therapeutic advantage and pay the full price for that, then there is no financial incentive to drug companies to come forward with new products that do represent a real therapeutic advantage
The real problem here is how to reorganize these financial incentives by using market forces to lower the cost of drugs when there are no therapeutic benefits, but at the same time offering real incentives to drug companies to come forward with innovative therapeutics.