This is my view, my words, my explanation to me. I think it’s an accurate assessment.
Baseline Research is where it all starts. It’s extremely expensive and has a high failure rate, not much payoff. It creates paths for further research to travel. Governments are usually the only entity that can sustain great financial loss and keep going. Governments are also able to require everyone they involve, to share information. (scientists).
Pharmaceutical companies avoid this because of the extreme cost in dollars and the lack of return on investment.
Do pharmaceutical companies need to make money? Does your company need to? Does the restaurant where you eat?
If the government doesn’t fund the pharmaceutical company, then of course they need to make a profit.