Economic Considerations for Implementation of an Antibiotic Pull Incentive

Antimicrobial resistant infections pose a significant global threat, and as resistance to generic antibiotics increases, a robust arsenal of novel antibiotics is needed to ensure public health. Unfortunately, developer activity is limited by market conditions in this area. A large pull incentive mechanism has been proposed as a promising approach to encourage new antimicrobial development, but generating and sustaining support for pull incentives has been difficult, even in areas where there is demonstrated public need. There is still not consensus from key stakeholder groups about whether a large pull incentive is needed, and whether one can be designed and implemented in a way that would bring real value. To help maximize the impact of a pull incentive, this workshop will describe the value provided by antimicrobials, and explore the economic rationale for a pull incentive to address current market challenges and to ensure public health benefits. Discussion will also cover how a market entry reward might complement other incentives, how policymakers are likely to view potential proposals, and which potential funding mechanisms are most politically and administratively feasible.