Despite years of warnings about the threat from antibiotic-resistant bacteria and the infections they cause, the situation is still dangerous across the globe. In the U.S., the government has laid out steps such as empaneling a new task force to create a National Action Plan of steps the federal government can take to address the issue and promoting the development of new diagnostics and antibiotics to detect and treat resistant pathogens. However, a fundamental market economics problem remains: pricing and reimbursement rates for antibiotics are too low to incentivize the development of new treatments.
In this Executive Insights, L.E.K. Managing Director Jonathan Kfoury outlines the issues facing the significant economic constraint on antibiotic value capture across the U.S. and Europe, and discusses possible solutions to unleashing a new wave of antibiotic development and addressing the reimbursement barrier head-on.