Medicines may cost somewhat more,
but that cost is trivial with the research and testing on the compounds that they DON'T make because they don't work. I agree that advertising is a biggie. Also absurdly high salaries to executives who don't do much anyway. Also the cost of dealing with the total assholes at the FDA is tremendous, certainly more than manufacturing costs. The motto of the FDA is:
"It is far better to reject 1000 perfectly good drugs to keep out one bad drug."
or perhaps:
"Never do in a year what can be done in ten years."