You only addressed part of the problem. The OP said IP.. so we're talking about trademarks in addition to patents.
The pharma companies would lose the ability to patent a drug.. which means they would keep it a tradesecret instead. So generic may or may not be able to be produced.
Second: without trademarks, pharma companies could invent Prilosec... and I (and anyone else) could sell a sugar pill named Prilosec. Or rat poison named Prilosec.. or any number of other items named Prilosec.
People would still be free to use and purchase based on the generic chemical name.
Furthermore, I would consider tradesecrets a form of IP so, if we are considering a scenario in which IP were abolished, tradesecrets would be abolished too in the sense that they would be afforded no legal protections. True, a formula or process could still be kept secret, but without protection for that secrecy it seems unlikely that real innovations would remain secret for long and market competition would increase as a result.
The pharma companies would lose the ability to patent a drug.. which means they would keep it a tradesecret instead. So generic may or may not be able to be produced.
Second: without trademarks, pharma companies could invent Prilosec... and I (and anyone else) could sell a sugar pill named Prilosec. Or rat poison named Prilosec.. or any number of other items named Prilosec.
This is not a result that is in anyones favor.