It looks like David Cameron is following President
Obama’s lead in establishing a task force to address the problem of
antibiotic resistance. Of course, as I noted when Obama set up his task force –
task forces are mostly a waste of time in my experience. But Cameron’s approach
is different. He proposes to focus on
the economics of antibiotic development.
The idea is to identify ways of providing appropriate return on
investment for companies who invest in antibiotic research and development. The
task force is being headed by an economist, Jim O’Neill. Mr. O’Neill was the
chairman of Goldman’s asset management group and is now an honorary professor
at the University of Manchester. He
clearly knows economics (he coined the term BRIC). Even if he doesn’t know much about bacteria
or antibiotics, he is probably the right person to lead the task force envisioned
by Cameron. Clearly, Cameron and O’Neill recognize that a constant pipeline of
new antibiotics will be required to keep us one step ahead of the
superbugs. And they recognize that the
only way we will achieve this is to bring more companies into the antibiotics
R&D game. I am therefore more optimistic about Cameron’s task force than
Obama’s.
And this brings me back to
AstraZeneca. As we all know, AstraZeneca is trying to “partner” or sell off
their antibiotics unit since they view it as being unable to provide a suitable
return on investment. They have probably
the best antibiotic pipeline in the industry and some of their projects have
clearly slowed as a result of AZ’s hesitancy to invest further in antibiotic
R&D. This remains one of the great tragedies
of our time.
AZ also recently escaped a
takeover by Pfizer – a company who abandoned antibiotics R&D recently –
partly with the help of the British government.
AstraZeneca is headquartered in Britain. Hmmmmm. 1 + 1 is . . . Could this be a signal to
Pascal Sirot, the CEO of AstraZeneca that abandoning his antibiotics effort at
this point might not be the best idea in the world?
Aside from the potential
importance of the British effort for AZ specifically, I do have a major concern
about all of these efforts. The analysis and suggested solutions must be
GLOBAL. The UK alone and possibly even
Europe alone will not be enough. The
economic or business models proposed must be realistic and implementable in all
areas of the world including the US and Asia.
Currently, the entire antibiotic market is being buoyed by Asia (outside
of Japan). This is partly because of a lack of new products being introduced
into the major markets (US and EU) and partly because of improving economic
conditions in Asia that provides for a growing population that can afford to
pay for internationally branded products.
Which of these two factors is more important – I can’t tell.
So – that leaves me with two
suggestions. (1) Prime Minister Cameron
and Mr. O’Neill – first job – please speak with M. Soriot at AstraZeneca. (2)
Please make sure your effort is truly a global one.
No comments:
Post a Comment