The biopharmaceutical industry saves more lives, relieves more suffering, and reinvests more profits into innovation than any other in the world. Yet the sector has become a public punching bag. Everyone from liberal Democrats to President Trump argues that drugs cost too much.

The problem is that “lowering drug prices” has different meanings to different people. If the goal is to help patients afford their medicine, a set of rational policy choices could help. If the goal is to stick it to pharma and help insurance companies...