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Models for Financing Antibiotic Development to Address Antimicrobial Resistance

The Financial Innovations Labs® and FasterCures teams have collaborated on a project to identify new models for financing the antimicrobial resistant antibiotic pipeline. These past 18 months have demonstrated how consequential public health risks are to the economy. As investors broadly increase their focus on ESG investments, antimicrobial resistance (AMR) is likely to be of growing concern. If AMR continues to remain unchecked, it may cost the global economy as much as $100 trillion by 2050. Recognizing the growing prevalence of drug-resistant infections, leading health organizations have declared AMR one of today's most significant global health threats.

The Milken Institute, in partnership with Wellcome Trust, hosted a Financial Innovations Lab to examine existing and new solutions that can revitalize the pipeline of antibiotics. During the Lab session, participants discussed possible funding and financing mechanisms to spur the research and development of antibiotics and reward the successful development of new products. Discussions included exploring the option of a social impact bond to pay for antibiotic development similar to traditional infrastructure. Utilizing the Milken Institute's network, participants tested the feasibility of a blended capital vehicle, as well as debt options, understanding return expectations at varying stages of drug development.