alt Hacker NewsI'm not convinced about trade secrets being the capitalistic route here, specially since, as pointed out somewhere else, the current system is basically like trade-secrets already, which suggest inverted causality.
In a pure free market, someone could try to keep the formulas secret, but others can just reverse engineer it into being public, which is basically guaranteed to happen if there's sufficient demand. Given that they aren't wasting money trying to obfuscate the recipe nor the formula, these competitors do have an advantage over the original. As such, I posit that free-to-copy will be default behavior in a pure free market, with trade-scerets being resteicted on niche sectors.
The reason we can't do this today is primarily that reverse engineering is heavily restricted by IP laws.
The recipe for Coca Cola, the most popular soft drink in the world by far, has been a trade secret for over 100 years. And I'd wager a guess that it's slightly simpler to make then most medicines. So I don't see any reason whatsoever to assume that drugs would be easily reverse engineered.
Instead, I'd say that the assertion that today's drug making is hard to reverse engineer is hard even knowing the exact formula, substance, and dosage of every drug is unlikely to be true - is there any example of any drug that generics companies are not producing more cheaply than the original inventor, once the patent has expired?