FDA production approval for a drug is expensive. If a competitor pays and gets a new line approved, the prize is zero, because of competition from the other line. If no competitor pays the prize is almost unlimited, because of no competition.
The government or a charity should fund another line, and should in general provide incentives to companies to not shut down existing approved lines if it would leave only one company standing.
The government or a charity should fund another line, and should in general provide incentives to companies to not shut down existing approved lines if it would leave only one company standing.