Research isn’t the really the expensive part. Or rather most of research is paid by governments. The expensive part is clinical trials. They are paid by the companies that later sell the drugs. Vast majority of clinical trials fails at various stages, but still has to be paid. So any drug that makes the cut has to pay for tens of other very promising compounds that turned out to be toxic, not effective in humans, or just not worth it (also including buying and shutting down competitors or discontinuing tests on drugs that might work, but would hurt company’s other business).

That being said, there’s something very wrong with drug prices in the US.