HomePractical info & communicationsReviews, reports and recommendationsModels for Financing Antibiotic Development to Address Antimicrobial Resistance, by the Milken Institute

Models for Financing Antibiotic Development to Address Antimicrobial Resistance, by the Milken Institute

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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.

Further reading: Milken Institute