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Incentives for New Drugs to Tackle Anti-Microbial Resistance

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  • Adrian Towse;Jimena Ferraro;Jorge Mestre-Ferrandiz

Abstract

Resistance to antibiotics is growing, posing a major health risk in rich and poor countries. Additional ways of rewarding R&D are required. Mechanisms designed to encourage companies to undertake R&D on new medicines are generally characterised as either “push” or “pull” programs. A new OHE Briefing has just been published entitled: Incentives for New Drugs to Tackle Anti-Microbial Resistance. Resistance to antibiotics is growing, posing a major health risk in rich and poor countries. Additional ways of rewarding R&D are required. Mechanisms designed to encourage companies to undertake R&D on new medicines are generally characterised as either “push” or “pull” programs. Push funding alone will not generate new medicines. Pull incentives are key to stimulating R&D for new antibiotics and vaccines. In this Briefing we look at the proposals in the 2016 O’Neill Report commissioned by the UK government and the 2017 GUARD Report commissioned by the German government. Our assessment is that both Transferable Intellectual Property Rights and the Market Entry Reward should be further explored for use in the EU as a regional “pull” incentive. A lead group of countries need to work together to develop a set of pull incentives to drive new antibiotic and vaccine R&D in Europe and globally.

Suggested Citation

  • Adrian Towse;Jimena Ferraro;Jorge Mestre-Ferrandiz, 2017. "Incentives for New Drugs to Tackle Anti-Microbial Resistance," Briefing 001842, Office of Health Economics.
  • Handle: RePEc:ohe:briefg:001842
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    File URL: https://www.ohe.org/publications/incentives-new-drugs-tackle-anti-microbial-resistance/attachment-amr-incentives-15-may-2017-final/
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    References listed on IDEAS

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    1. DiMasi, Joseph A. & Grabowski, Henry G. & Hansen, Ronald W., 2016. "Innovation in the pharmaceutical industry: New estimates of R&D costs," Journal of Health Economics, Elsevier, vol. 47(C), pages 20-33.
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    6. Jorge Mestre-Ferrandiz;Jon Sussex;Adrian Towse, 2012. "The R&D Cost of a New Medicine," Monograph 000135, Office of Health Economics.
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    Cited by:

    1. Coburn, Josie & Bone, Frederique & Hopkins, Michael M. & Stirling, Andy & Mestre-Ferrandiz, Jorge & Arapostathis, Stathis & Llewelyn, Martin J., 2021. "Appraising research policy instrument mixes: a multicriteria mapping study in six European countries of diagnostic innovation to manage antimicrobial resistance," Research Policy, Elsevier, vol. 50(4).
    2. Towse, Adrian & Hoyle, Christopher K. & Goodall, Jonathan & Hirsch, Mark & Mestre-Ferrandiz, Jorge & Rex, John H., 2017. "Time for a change in how new antibiotics are reimbursed: Development of an insurance framework for funding new antibiotics based on a policy of risk mitigation," Health Policy, Elsevier, vol. 121(10), pages 1025-1030.

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    Keywords

    Incentives for New Drugs to Tackle Anti-Microbial Resistance;

    JEL classification:

    • I1 - Health, Education, and Welfare - - Health

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