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Incentives for New Drugs to Tackle Anti-Microbial Resistance


  • Ferraro, J.
  • Towse, A.
  • Mestre-Ferrandiz, J.


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

  • Ferraro, J. & Towse, A. & Mestre-Ferrandiz, J., 2017. "Incentives for New Drugs to Tackle Anti-Microbial Resistance," Briefings 001842, Office of Health Economics.
  • Handle: RePEc:ohe:briefg:001842

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    References listed on IDEAS

    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.
    2. Hollis, Aidan & Ahmed, Ziana, 2014. "The path of least resistance: Paying for antibiotics in non-human uses," Health Policy, Elsevier, vol. 118(2), pages 264-270.
    3. Mestre-Ferrandiz, J. & Sussex, J. & Towse, A., 2012. "The R&D Cost of a New Medicine," Monographs, Office of Health Economics, number 000135.
    4. Karlsberg Schaffer, S. & West, P. & Towse, A. & Henshall, C. & Mestre-Ferrandiz, J. & Masterson, R. & Fischer, A., 2017. "Additional Elements of Value for Health Technology Assessment Decisions," Briefings 001851, Office of Health Economics.
    5. Mueller-Langer, Frank, 2013. "Neglected infectious diseases: Are push and pull incentive mechanisms suitable for promoting drug development research?," Health Economics, Policy and Law, Cambridge University Press, vol. 8(2), pages 185-208, April.
    6. Richard, Oliver & Van Horn, Larry, 2004. "Persistence in prescriptions of branded drugs," International Journal of Industrial Organization, Elsevier, vol. 22(4), pages 523-540, April.
    7. Michael Kremer, 2002. "Pharmaceuticals and the Developing World," Journal of Economic Perspectives, American Economic Association, vol. 16(4), pages 67-90, Fall.
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    Cited by:

    1. 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.

    More about this item


    Economics of Industry; Economics of Health Care Systems;

    JEL classification:

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

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