Antibiotic Market Snapshot: In Exchange For Higher Prices, More Value

Drug developers face enormous regulatory and commercial hurdles in the antibiotics market, but industry is looking to challenge the current business model with new premium-priced drugs that deliver compelling pharmaco-economic benefits over generics.

The antibiotic market hasn’t enticed many drug makers.Research in the space has always been spotty but it ground to a halt five years ago in the wake of the safety scandal involving Sanofi-AventisKetek (telithromycin): deaths and liver-related adverse events stemming from an approval based on fraudulent trial data. Some big pharmas like Pfizer Inc. and Johnson & Johnson abandoned discovery research in the space or significantly reduced R&D investment, as industry turned its focus to more profitable therapeutic areas with less regulatory risk, like oncology and inflammatory disease.

But demand for new antibiotics that target resistant bacteria has only grown, and a handful of start-ups and a few...

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