Restoring the antibiotic R&D market to combat the resistance crisis

Author:

Böttcher Lucas12,Gersbach Hans3,Wernli Didier4

Affiliation:

1. Computational Social Science, Frankfurt School of Finance and Management, Adickesallee 32-34, Frankfurt am Main 60322, Germany

2. Department of Computational Medicine, David Geffen School of Medicine, Box 951766, Room 5223 Life Sciences Bldg, Los Angeles, CA 90095-1766, USA

3. Center of Economic Research and CEPR, ETH Zurich, Zürichbergstrasse 18, Zurich 8092, Switzerland

4. Geneva Transformative Governance Lab, Global Studies Institute, University of Geneva, Rue des Vieux-Grenadiers 10, Geneva 1205, Switzerland

Abstract

Abstract Antibiotic resistance has developed into a major public health concern due to the widespread prevalence of bacterial infections such as sepsis and urethritis and the frequent occurrence of opportunistic infections in immunocompromised patients. Unfortunately, the pipeline for new antibiotics has been almost stagnant for more than three decades. The main reason is that the antibiotics R&D market is dysfunctional since antibiotics R&D is a very risky business model that is not profitable and attractive for investors under current market and policy conditions. Our work analyzes the main economic and policy challenges in antibiotics R&D and highlights the need of rapid action in developing new push and pull incentives for antibiotics R&D. We suggest three core elements of a redesign of the R&D market: (1) levying a fee on the nonhuman use of antibiotics, (2) using these revenues to pay for market entry rewards, and (3) rewarding companies for the development of new antibiotics that are effective against resistant bacteria (‘the resistance premium’).

Funder

Swiss National Fund

Publisher

Oxford University Press (OUP)

Subject

Management, Monitoring, Policy and Law,Public Administration,Geography, Planning and Development

Reference26 articles.

1. 21 U.S. Code § 360bb—Designation of Drugs for Rare Diseases or Conditions;21 U.S. Code § 360bb,1997

2. Antibiotic Development—Economic, Regulatory and Societal Challenges;Årdal;Nature Reviews Microbiology,2019

3. Revitalizing the Antibiotic Pipeline: Stimulating Innovation while Driving Sustainable Use and Global Access;Årdal,2018

4. IP-based Incentives against Antimicrobial Crisis: A European Perspective;Batista;IIC-International Review of Intellectual Property and Competition Law,2019

5. A Refunding Scheme to Incentivize Narrow-spectrum Antibiotic Development;Böttcher,2020

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