Models for Financing Antibiotic Development to Address Antimicrobial Resistance

The focus of this work is to address the economic challenges of bringing new antibiotics to market.
While a host of programs are instrumental in keeping the R&D pipeline afloat, today’s market
function poses significant obstacles for companies trying to finance the continued development of
novel antibiotics. To overcome these barriers, all stakeholders must appreciate the importance of
having effective antibiotics available for use and understand how their actions affect the overall
landscape. For clinical stakeholders, that means reducing resistance by ensuring antibiotics are
prescribed appropriately. In a survey by Pew and the American Medical Association, for example, 65
percent of doctors noted an increase in resistant infections but did not see themselves as directly
involved in the problem. On the financing side, it is estimated that the public sector will need
to inject $1.2 billion into the market every year to incentivize antibiotic innovation. That is a
considerable cost burden for public resources, underscoring the need to address existing market
failures and lower the barriers for private investors to play a role.