News

Evaluating for-profit public benefit corporations as an additional structure for antibiotic development and commercialization

Evaluating for-profit public benefit corporations as an additional structure for antibiotic development and commercialization

SCIENCE DIRECT | Antibiotics are a key infrastructure underpinning modern medicine, but evolution will continue to undermine their effectiveness, requiring continuous investment to sustain antibiotic effectiveness. The antibiotic R&D ecosystem is in peril, moving towards collapse. Key stakeholders have identified pull incentives such as Market Entry Rewards or subscription models as the key long-term solution. If substantial pull incentives become possible, there is every reason to expect that for-profit companies will return to the antibiotic field. However, the political and financial will to develop such incentives may be difficult to muster in the timeframes needed to prevent further diminishment of antibiotic R&D, especially if large drug companies are seen as substantial beneficiaries of these taxpayer-funded pull incentives. Bridging solutions are required in the interim. This analysis, authored by Kevin Outterson and John Rex, explores potential solutions led by private actors, including (1) traditional for-profit companies; (2) non-profit enterprises; and (3) public benefit corporations with lower profit expectations, akin to a public utility. All face similar commercial struggles, but nonprofits and public benefit corporations can accept lower profit expectations.

Full Story