Seems likely either drugs would end up being used, or government would stop funding drug R&D research.
Saying funding would continue without any benifits seems to be the least likely outcome. Personally, I would be fine stopping all public drug research, but I suspect more people would want to continue...
Presumably, if they continue to fund research, public entities would then pay to finish the process. This would mean either fewer drugs or more money for R&D.
In the end when you change one part of the process you need to assume other parts of a related system will change in some manor.
The ones doing basic research today have zero capability to do the development part. So you'd be looking at spending a ton of money to try and develop the needed expertise to bring a molecule all the way to market. Would that also include commercialization - things like marketing?