Antimicrobial Resistance: The Problem with Market Entry Rewards

JONATHAN J. DARROW & JOHN H. POWERS III

ABSTRACT

To combat the growing threat of antimicrobial resistance, Congress has considered legislation such as the PASTEUR Act that would provide “market entry rewards” of up to $3 billion for each new FDA-approved drug. As policymakers consider such rewards, they should appreciate valuation challenges long known to the intellectual property community but under-acknowledged in health policy circles. For new drugs, these challenges include hidden government costs already expended, foregone opportunities to pursue alternate means of reducing patient morbidity and mortality, and the risk posed by creeping political influence to future value assessments. It will also be important for legislators to consider the disappointing outcomes of similar past laws, such as the GAIN Act.