AMR Therapeutic Landscape

The Broken AMR Market

Modern medicine depends on antimicrobials, but the market designed to develop them is not functioning effectively

The Broken AMR Market

The Economics of Antimicrobials Are Broken, and Patients Are Paying for It

Antimicrobial resistance (AMR) is accelerating globally, threatening to undermine large areas of medicine, including surgery, cancer care, transplantation, intensive care medicine, and the treatment of routine infections. New classes of microbe-killing drugs are desperately needed to combat the spread of resistant pathogens, but the commercial landscape that fuels the development of new antimicrobials has steadily deteriorated.

Unlike the markets for oncology, rare disease, or immunology drugs, the market for new antimicrobials offers little incentive for innovation, as new antimicrobials must compete with inexpensive generics, and stewardship programs restrict their use to preserve their effectiveness. The result is a market failure with profound public health consequences: companies collapse after approval, investors retreat, large pharmaceutical companies abandon the field, and the antimicrobial pipeline grows thinner.

AMR Discovery Void:
The Lost Decades

For much of the 20th century, antibiotic discovery transformed medicine. Penicillin, streptomycin, tetracyclines, cephalosporins, carbapenems, and fluoroquinolones fundamentally changed survival outcomes for infectious diseases. Between the 1940s and the 1980s, pharmaceutical companies discovered and commercialized wave after wave of novel antibacterial classes. This era became known as the “golden age” of antibiotics.

Then discovery slowed.

Over the past four decades, the rate of discovery of novel antibiotic classes has dramatically declined. Scientific challenges increased, resistance mechanisms evolved, and commercial incentives deteriorated. By the early 2000s, many of the world’s largest pharmaceutical companies had substantially reduced or eliminated antibiotic research.

Today, the world faces a dangerous mismatch: antimicrobial resistance continues to accelerate while the pipeline of truly novel antibiotics remains thin.

The Timeline of Antibiotic Discovery

Discovery
Golden era
Void period

Discovery void

1920
1930
1940
1950
1960
1970
1980
1990
2000
2010
1928 · Penicillin
1932 · Sulfonamides
1942 · Penicillin G
1944 · Streptomycin
1946 · Chloramphenicol
1947 · Bacitracin
1948 · Chlortetracycline
1950 · Oxytetracycline
1952 · Erythromycin
1953 · Isoniazid
1955 · Vancomycin
1957 · Kanamycin
1961 · Ampicillin
1962 · Nalidixic acid
1969 · Trimethoprim
1971 · Doxycycline
1976 · Cefoxitin
1978 · Norfloxacin
1979 · Imipenem
1987 · Lomefloxacin

What’s Driving the AMR Innovation Drought?

Unlike most therapeutic areas, successful antibiotics are intentionally prevented from becoming blockbuster products. Some of the reasons include:

Stewardship Suppresses Revenue

When a new antibiotic reaches the market, clinicians are often encouraged to reserve it for the most resistant infections. This is medically necessary to slow the emergence of resistance and preserve effectiveness.

But stewardship creates a commercial contradiction: the better a new antibiotic is protected, the worse its revenue performance becomes. This makes antimicrobials fundamentally different from chronic therapies or oncology drugs, where commercial success depends on maximizing long-term utilization.

Generics Heavily Influence Pricing

Many highly effective generic antibiotics cost only a few dollars per treatment course. Therefore, hospitals and payers expect similarly low pricing from new agents, even when those therapies required hundreds of millions of dollars of investment to develop. As a result, novel antimicrobials often enter markets that are economically incapable of supporting sustainable innovation.

Clinical Development Is Difficult and Expensive

AMR-focused clinical trials face major operational challenges like difficult patient enrollment, complex study designs, regulatory uncertainty, limited availability of resistant pathogen population, and high development costs with uncertain reimbursement pathways. These challenges disproportionately impact small and mid-sized biotech companies that now carry much of the global antibiotic pipeline.

Investors Have Lost Confidence

Antibiotic development has become associated with poor financial returns, even after FDA approval. Multiple antimicrobial companies have gone bankrupt, liquidated assets, or sold programs at distressed valuations despite successfully developing clinically valuable therapies. This has created a feedback loop that continues to suppress private investment into the sector.

AMR Valley of Death Victims

The antimicrobial sector is now littered with companies that achieved scientific success but commercial failure. These organizations developed urgently needed therapies against resistant pathogens, secured regulatory approvals, or advanced promising candidates through clinical development, only to collapse under the economics of the antibiotic market.

Big Pharma Has Walked Away

For decades, large pharmaceutical companies drove antibiotic discovery and commercialization. Many of the foundational antimicrobial therapies used today originated from multinational pharmaceutical R&D programs. Most have now exited the field.

Pfizer logo

Antimicrobial Legacy

Pfizer's antimicrobial history spans more than 80 years — from mass-producing penicillin for Allied forces in World War II to developing azithromycin, doxycycline, piperacillin-tazobactam, and tigecycline.

Status

A founding member of the AMR Action Fund and active developer with EMBLAVEO approved in 2024, Pfizer is among the few large pharma companies that have not abandoned antibiotic development, but there are signs that they are narrowing their focus.

Novartis logo

Antimicrobial Legacy

Novartis built one of the largest antimicrobial research portfolios in the industry, with 32 active programs as of 2016, including LFF571 for C. difficile and LYS228 for carbapenem-resistant Enterobacteriaceae.

Status

In 2018, Novartis exited antibiotic R&D entirely, cutting 140 positions and out-licensing its pipeline. Sandoz, its generics division, was spun off as an independent company in 2023.

AstraZeneca logo

Antimicrobial Legacy

Through the early 2010s, AstraZeneca maintained one of the world's largest antibacterial pipelines, developing meropenem, ceftaroline (Zinforo), ceftazidime-avibactam (Zavicefta), and aztreonam-avibactam, while claiming commitment to novel antibiotic research.

Status

In 2016, AstraZeneca sold its entire antibiotics commercialization and development business to Pfizer for $550 million upfront, spun out Entasis Therapeutics, and exited antibiotic R&D entirely.

Sanofi logo

Antimicrobial Legacy

Sanofi's antimicrobial portfolio spanned decades, manufacturing cefotaxime, ceftriaxone, rifampicin, rifapentine, colistin, and fosfomycin, while maintaining an active anti-infective R&D unit that developed novel compounds and signed the 2016 Davos Declaration on AMR.

Status

In June 2018, Sanofi transferred its entire anti-infectives R&D unit, including IP rights and around 100 scientists, to Evotec, exiting antibiotic discovery just two years after its Davos commitments.

Eli Lilly logo

Antimicrobial Legacy

Eli Lilly's contributions to antibiotics were foundational to modern medicine — discovering vancomycin in 1952, introducing erythromycin, and pioneering the cephalosporin class, including Ceclor, which became the world's top-selling oral antibiotic.

Status

Lilly exited antibiotics entirely, selling its final antibiotic assets, Ceclor and Vancocin rights in China, to Eddingpharm in 2019. While it has not reinvested in traditional antibiotics, Lilly made strategic acquisitions in the infectious disease space in 2026.

Bristol-Myers Squibb logo

Antimicrobial Legacy

Squibb operated the world's largest penicillin plant in 1943. Throughout the postwar decades, Bristol-Myers Squibb helped develop streptomycin, tetracycline, and cephalosporins, making it one of the foundational industrial contributors to antibiotic medicine.

Status

BMS exited antibiotic research entirely in 2006 and has no AMR pipeline or commitments. Its identity is now built entirely on other therapeutic areas like oncology, cardiovascular, and immunology.

The Broken Market in Repair

Despite the severity of the problem, governments, nonprofits, and industry groups are working to rebuild antimicrobial innovation infrastructure.

Push Incentives

Push incentives reduce the cost of development through:

Grants

Public-private partnerships

Early-stage funding

Translational research support

Clinical development assistance

Pull Incentives

Pull incentives attempt to reward successful innovation regardless of sales volume.

These include:

Subscription-style reimbursement models

Market entry rewards

Transferable exclusivity vouchers

Delinkage models separating revenue from unit sales

Modality Innovation

New methods and approaches are being explored with greater fervor than ever, largely driven by the rapid expansion of our collective understanding of cellular behavior and microenvironments.

Bacteriophage therapies

AI-enabled antimicrobial discovery

CRISPR-based antimicrobials

Microbiome therapeutics

Precision anti-infectives

Next-generation small molecules

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