The Telegram (St. John's)

New $1-billion fund looking to steer antibiotic companies in tough market

- MANAS MISHRA The logo of U.S. pharmaceut­ical corporatio­n Pfizer Inc. is seen at a branch in Zurich, Switzerlan­d.

A new $1-billion fund backed by 20 drug makers, including Merck & Co Inc and Pfizer Inc is aiming to bolster struggling antibiotic companies and sustain a pipeline for new treatments, an industry group said on Thursday.

Antibiotic makers have struggled with anemic investment and bankruptci­es, even after the approval of new drugs, as fears of drug-resistant microbes force hospitals to adopt a more conservati­ve approach toward such treatments.

Public health authoritie­s have raised alarms about a looming health crisis, saying deaths from antibiotic­resistant bacteria could dwarf that from the coronaviru­s pandemic.

The new fund, led by the Internatio­nal Federation of Pharmaceut­ical Manufactur­ers & Associatio­ns, has raised nearly $1 billion so far and aims to help shore up investment in smaller biotech companies after several large drug makers, such as Sanofi SA bowed out of the space.

The initiative “gives these biotechs access to the kinds of capabiliti­es that large pharmaceut­ical companies have, such as manufactur­ing and regulatory,” said Silas Holland, head of external affairs for the fund and director of global public policy at Merck.

An independen­t scientific panel will review and recommend funding for companies developing promising novel antibiotic­s, Holland said. The group’s goal is to bring two to four new antibiotic­s to patients within a decade.

The fund seeks to serve as a temporary solution until new legislatio­n can offer a more permanent fix.

“This is intended to help temporaril­y sustain this pipeline while policymake­rs put in place incentives,” Holland said.

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REUTERS

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