Outlook: the profit problem in antibiotic R&D

Area of Science:

• Pharmaceutical Science
• Health Economics
• Public Policy

Background:

• A significant shortfall exists in the research and development (R&D) of new antibiotics, posing a threat to global health.
• The current economic model for antibiotic development is insufficient to incentivize innovation for this critical class of drugs.

Approach:

• This analysis presents three distinct proposals formulated by experts from economics, biomedical research, and business.
• The proposals focus on distinct mechanisms: advance purchase contracts, a not-for-profit research model, and tax incentives.
• These approaches aim to stimulate investment and overcome barriers in antibiotic R&D.

Key Points:

• Advance purchase contracts offer guaranteed markets for successful drugs, mitigating financial risk for developers.
• A not-for-profit research entity could focus on developing antibiotics without primary profit motives, addressing neglected areas.
• Tax incentives provide financial benefits to companies investing in antibiotic R&D, encouraging private sector participation.

Conclusions:

• The proposed strategies offer innovative solutions to the antibiotic R&D crisis.
• These proposals share common ground with pending US Congressional bills, suggesting a potential shift in policy.
• Addressing the antibiotic R&D shortfall requires multifaceted approaches, potentially involving governmental and private sector collaboration.