Australia’s looming crisis and the economic value of driving innovative funding models

Pharma News: The devastating impact of antimicrobial resistance (AMR) on Australia has been unveiled, shedding light on the crucial importance of reducing ‘superbug’ infections. This first-of-its-kind analysis has not only exposed the dire clinical consequences but also emphasised the staggering economic benefits that can be reaped by curbing this global public health crisis.

AMR has led to a scarcity of effective treatments for bacterial infections, resulting in over 700,000 annual deaths globally from antimicrobial-resistant bacterial infections. The loss of branded antibiotic sales causing a decline in the financial resources available to pharmaceutical companies for research and development (R&D) of new antimicrobials. Reports have highlighted the alarming reality that fewer than 50 antibiotics are currently in various stages of clinical development to combat AMR.

As antimicrobial stewardship (AMS) initiatives advocate for the reduction of unnecessary antimicrobial use, existing treatments are often preserved as a last resort against multi-resistant organisms. The combination of low prices, high development costs, and the short lifespan of antimicrobials has resulted in limited economic returns for manufacturers. Consequently, pharmaceutical companies have been forced to exit the market or even declare bankruptcy. Even when new antimicrobial agents manage to reach the market, their commercial viability remains low, leading to delays or withdrawal of commercialisation efforts, even in high-income countries.

The recent study has uncovered compelling evidence regarding the potential benefits of tackling AMR head-on. By reducing AMR in three specific hospital-acquired infections by an astonishing 95% over a decade, the study estimates that 9,041 hospital bed days were saved, and 6,644 daily doses of antibiotics were avoided. This achievement alone is estimated to have saved a staggering $10.5 million in hospitalisation costs, while presenting an overall economic benefit of up to $412 million for the Australian economy. Even a reduction of 10-50% in AMR would still yield an estimated total economic benefit of approximately $16-$222 million.

“This new study shows a clear economic rationale for tackling AMR. Part of the answer to this problem is the need for new antimicrobials, but a key challenge is that it’s a broken market,” said study co-author Professor Mark Blaskovich, Centre for Superbug Solutions, Institute for Molecular Bioscience, University of Queensland.

“Australia urgently needs to adopt innovative reimbursement schemes that adequately value investment in the development and commercialisation of effective new antimicrobials. There are several overseas examples we can look to, including subscription-style funding models being piloted in the UK.”

Further analysis of Australia-specific data paints a grim picture, estimating that resistant bacterial infections claim the lives of 290 people annually. Alarmingly, this number is predicted to skyrocket to 10,430 individuals by 2050, accompanied by healthcare costs reaching a staggering $521 million.

The study also revealed a potentially calamitous economic cost if AMR continues to surge unchecked. Researchers explored an alarming scenario by applying Indonesia’s AMR rates (39.5% in 2015) to the Australian context over a ten-year period. The results were deeply concerning, estimating an additional financial burden of $8.8 billion over a decade compared to the current situation.

The implications of these findings are clear: immediate action is needed to address the escalating threat of AMR in Australia. While the development of new antimicrobials remains a critical component of the solution, it is evident that the existing market dynamics pose significant challenges. Innovative reimbursement schemes that incentivise investment in research, development, and commercialisation of effective antimicrobial drugs must be embraced.

The fight against AMR requires a coordinated effort from healthcare professionals, policymakers, and the pharmaceutical industry to ensure the development and availability of effective antimicrobial treatments.

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