“If people were insects, there would be more approved drugs on the market.”
The key to the puzzle is in the "number" of approved drugs on the market.
Let number = the number of kinds of approved drugs on the market.
Let number = the total number of drugs on the market, irrespective of kinds.
Since the total population of insects is some multiple of the total population of people, if people were insects, the "people" population would be higher than now. Hence the market would bear a higher number of approved drugs and there would be more approved drugs on the market than at present.
And that is why Peregrine Pharmaceuticals is not a scam.