http://www.cptech.org/ip/health/econ/nadedola06222001.html
... As is well known in your industry, BMS benefits richly from a plethora of US programs, including for example the US tax credits for R&D, the orphan drug tax credit, the US tax credit for manufacturing products in Puerto Rico, subsidized loans from the US Import-Export bank, the pediatric R&D patent extension, and a variety of R&D non-patent regular exclusivity provisions.
BMS has also benefited more than most from the massive R&D support funded through the National Institutes of Health (NIH) and other federal agencies. BMS products in the cancer and HIV area have benefited enormously from federally funding of R&D, including such products as Hydroxyurea, Bleomycin, Lomustine, Carmustine, Cisplatin, Cisplatin VP-16, Ifosfamide, Carboplatin, VM-26, Taxol, DDI and D4T. As you know, the US government generally is not compensated for subsidizing the costs of clinical trials on these drugs, and does not seek high royalties for licenses of government owned patents. For example, the National Cancer Institute received no royalties from its 1990 CRADA for the commercialization of Taxol, a drug that has generated billions in dollars in revenues for BMS.
Just like all the other "Free" Marketeers - all "free market" means to them is the freedom to gouge people - they are more than happy to take the handouts the government gives them to subsidize their profits.