tag:blogger.com,1999:blog-4287560491211025099.post2831111241256089232..comments2023-09-22T08:24:01.913-04:00Comments on Antibiotics - The Perfect Storm: Antibiotics - Europe or a Tapestry of Nations?David Shlaeshttp://www.blogger.com/profile/00228776693058791618noreply@blogger.comBlogger3125tag:blogger.com,1999:blog-4287560491211025099.post-37809911955622789222019-12-06T09:55:49.974-05:002019-12-06T09:55:49.974-05:00I just wanted to point out that since we've be...I just wanted to point out that since we've been subsidizing R&D for Europe for decades, a substantial pull incentive from them might be reasonable payback.David Shlaeshttps://www.blogger.com/profile/00228776693058791618noreply@blogger.comtag:blogger.com,1999:blog-4287560491211025099.post-24668615351918494822019-12-05T10:13:28.741-05:002019-12-05T10:13:28.741-05:00Let's say "anonymous" is completely ...Let's say "anonymous" is completely right and pricing pressures squeeze the profits. It seems logical that "industry will adapt to single digit margins" by focusing even more on drugs that require long-term administration and/or very large patient populations. Unfortunately, this leaves antibiotics for MDR pathogens even worse off than they are now. It is worth emphasizing what should be a dire warning from this blog post: "The time it will take to provide a meaningful return on investment (if that occurs at all) will not save a number of small companies that are currently struggling with impending bankruptcy. A raft of such bankruptcies will probably occur in the near future. This will further aggravate the death spiral of investment in antibiotics R&D."Anonymoushttps://www.blogger.com/profile/02578758633759620877noreply@blogger.comtag:blogger.com,1999:blog-4287560491211025099.post-37238951273349343912019-12-03T04:59:22.198-05:002019-12-03T04:59:22.198-05:00"Given that large pharmaceutical companies ge..."Given that large pharmaceutical companies generally base their R&D budgets on yearly profits, a large change in profits as would occur if the US adapts a more rational pricing policy, would result in lower R&D investments and, consequently, less innovation."<br /><br />I don't believe that's right. Pharma is by essence R&D-based. Without innovation, within 10 years the company ceases to exist, or is in deep deep trouble. Less profit doesn't necessarily mean less innovation. It may just mean less profit, and these companies (and investors) will have to adapt. As the Regeneron CEO once said, they are not entitled to a proportion of the GDP. Or to double-digit net margins actually. If pricing becomes more rational, the industry will adapt to single digit margins as it becomes the norm. While there may be less financing options available for Biotech, it may indeed result in some loss of innovation, but it does not mean the change will be as cataclysmic as some anticipate..Anonymousnoreply@blogger.com