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Simulating Market Entry Rewards for Antibiotics Development.

Christopher Okhravi¹, Simone Callegari¹, Steve McKeever¹

¹Christopher Okhravi, M.S.Sc., is a Ph.D. student of Information Systems. His research concerns simulating the effects of policy intervention on research & development. Simone Callegari, Ph.D., is a Postdoctoral Investigator at Uppsala University in Sweden. His research concerns simulating the effects of policy intervention on antimicrobial agents' research & development. Steve McKeever, D.Phil., is an Associate Professor of Information Systems at Uppsala University in Sweden. He holds a D.Phil. in Mathematics from the University of Oxford. A recent focus has been supporting simulations at the life science interface. Carl Kronlid, M.Sc., is a Ph.D. student of Industrial Engineering & Management at Uppsala University in Sweden. His research is focused on innovation and organizing, with a focus on collaborative high-tech innovation projects. Enrico Baraldi, Ph.D., is a Professor of Industrial Engineering & Management at Uppsala University in Sweden. His research concerns strategies in business networks, innovation, product development and the commercialization of science. Olof Lindahl, Ph.D., is an Assistant Professor of International Business at Uppsala University in Sweden. His research interests lie in the management of multinational firms, particularly in the mechanical engineering and pharmaceutical industries. Francesco Ciabuschi, Ph.D., is a Professor of International Business at Uppsala University in Sweden. His research concerns management of multinationals, corporate strategy, state enterprises, innovation management and entrepreneurship.

The Journal of Law, Medicine & Ethics : a Journal of the American Society of Law, Medicine & Ethics

|August 28, 2018

Summary

This summary is machine-generated.

Market Entry Rewards (MER) effectively boost antibiotic research and development (R&D). Enhancing projected revenues is more efficient than reducing costs for stimulating new antibiotic R&D, confirming MER

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Antibiotic Dereplication Using the Antibiotic Resistance Platform

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Published on: October 17, 2019

Area of Science:

Pharmacoeconomics
Health Economics
Pharmaceutical Policy

Background:

Antibiotic resistance necessitates novel drug development.
Current antibiotic R&D faces significant financial and market challenges.
Policy interventions are explored to incentivize antibiotic innovation.

Purpose of the Study:

To model the impact of Market Entry Reward (MER) on antibiotic R&D success.
To analyze the interaction between MER and key economic parameters.
To evaluate the efficiency of MER in stimulating antibiotic development.

Main Methods:

Agent-based Monte Carlo simulation.
Sensitivity analysis of MER with varying R&D costs, revenues, discount rates, and financial thresholds.
Economic modeling of pharmaceutical R&D.

Main Results:

MER significantly increases the probability of antibiotics reaching the market.
Increasing projected net revenues is a more efficient strategy than reducing R&D costs.
The effectiveness of MER is influenced by venture capitalist discount rates and large pharmaceutical organization financial thresholds.

Conclusions:

Market Entry Reward is a viable pull-based policy to stimulate antibiotic R&D.
Revenue enhancement strategies are crucial for optimizing MER's impact.
Policy design should consider financial market dynamics and organizational investment criteria.