Economic Incentives for Antibacterial Drug Development: Alternative Market Structures to Promote Innovation

Abstract

The current economic model for antibacterial drug development and commercialization does not provide sufficient financial returns that reflect the societal value that new antibacterial agents provide. As such, the pharmaceutical industry has largely focused their development efforts on therapeutic areas where greater profit potential exists resulting in a substantial innovation gap in antibacterial drug development. The number of new antibiotics in development is likely too small to withstand technical attrition and increasing rates of bacterial resistance. New market models are needed that reward innovation in antibacterial drug development and provide a stronger return on investment for companies still operating in this space. While rewarding innovation, these models should also promote stewardship of new antibacterial drugs and ensure access to all patients that need them. This chapter explores various proposals for alternative market models and their associated policy considerations.