Incentivizing New Veterinary Pharmaceutical Products to Combat Antibiotic Resistance

Abstract

The development of alternative animal health products is one way to reduce antibiotic use in agriculture. However, little economic research is directed at animal pharma. While programs to incentivize research and development (R&D) for human drugs have been adopted, analogous programs in veterinary pharma are only at the proposal stage. We describe the broad "push" and "pull" incentive mechanisms for human pharma, and analyze the differences in employing these in veterinary pharma. Using newly compiled data on veterinary drug approvals and firmlevel R&D, we also present data on trends in drug development for veterinary pharma.

Impacts on Livestock Producers and Veterinarians ofFDAPolicies on Use of Medically Important Antibiotics in Food Animal Production

“…Greater analysis is required to ascertain the differences between US and European livestock systems to comprehend how European methods of antibiotic reduction would fare in US systems. Efforts to encourage development of alternatives to antibiotics may also be useful in the US and other high‐antibiotic‐use regions (Sneeringer and Clancy 2019).…”

Strategic Priorities for Research on Antibiotic Alternatives in Animal Agriculture—Results From an Expert Workshop

“…To determine economic viability, animal health companies and investors evaluate the potential product's expected revenue and probability of success, compared to anticipated costs and risks (9). These evaluations usually take a global perspective, and factor in relevant national and regional policies, such as current or likely future antibiotic use restrictions and the broader regulatory landscape.…”

“…The initial discovery and development of a new animal health product typically incurs substantial costs, as outlined in Table 1. Product manufacturing, service, distribution, disposal and extensions to new species or indications can constitute substantial additional costs which may be challenging to predict during initial development stages (9). Uncertainty in the predicted project cost and associated risks, including the probability of regulatory success or public acceptance, will also discourage investment.…”

“…Product specific considerations include the expected return on investment (ROI) for the livestock producer, and the competitiveness of the product compared to alternatives. As outlined in Table 1, several factors impact the ROI, making it potentially challenging to predict (9, 13, 14). Product competitiveness refers to the availability of “substitutes”—interventions that address the same health issue.…”

A Review of Fish Vaccine Development Strategies: Conventional Methods and Modern Biotechnological Approaches

“…Despite multiple approaches to innovative therapy, fish diseases remain a major economic issue in commercial aquaculture worldwide. Although antibiotics or chemotherapeutics may be implemented for disease treatment, there are some clear drawbacks, such as drug resistance issues and safety concerns [1]. Vaccination, as an effective method of preventing a wide range of bacterial and viral diseases, and contributes to environmental, social, and economic sustainability in global aquaculture.…”