Who Funds the Funder? An Investigation into Taxation to Finance the Development of New Antibiotics. (360G-Wellcome-208472_Z_17_Z)

The traditional antibiotic funding model involves pharmaceutical companies funding drug development; in return, they receive a period of patent protection, which allows them supernormal profits as the monopoly supplier. However, growing antimicrobial resistance means that antibiotic use needs to be limited. Limiting sales would reduce the financial incentive for the development of new antibiotics, at a time when growing resistance causes a critical need for further development. Proposed replacement funding models seek to delink profits from sales volumes; as such, it will be necessary to replace market incentives for innovation with other financial incentives. Though proposed models include new financial incentives, where this money will come from remains an open question. The pharmaceutical industry will receive these financial incentives, and so it seems appropriate that they should be taxed to help finance them. In my research, my key goals are to: Review potential financing of antibiotics development from taxation of the pharmaceutical industry. Investigate how financing arrangements can balance antibiotics stewardship, equitable access to antibiotics and incentives for antibiotics innovations. Set out how taxes could be enforced despite the international nature of this industry. Set out a pragmatic road map for financing antibiotics development moving forward.