system
Given the following post, respond as if you're commenting on Reddit:
human
How do European drug manufacturers make a profit?

I was reading up on US drug manufacturers with U&C pricing, PBMs, insurance, patents, and the like, and even though all that what I couldn't wrap my head around was how EU drug manufacturers make profit with, and I could be wrong on this fact, their government setting a cap on drug prices.

Wouldn't a market cap disincentivize R&D? Or at least limit it?

Or can EU manufacturers simply copy what US R&D produces and use the formula and create a new patent in the EU?

I have no idea how patents work over international  borders and I could be very underinformed about the process so feel free to correct me on any and all points made!
gpt
Drug companies patent things everywhere and sell globally. US is the biggest market so thats where drug companies make the most money regardless of nationality. There are different patent rules around the world so they have different monopoly timings, but as said Drug companies sell on every market regardless of where the company has its headquarters, therefore the nationality of a drug company does not really matter.