Madam Therapeutics

Pharma companies are creating a new $1 billion fund to acquire or invest in small antibiotic companies

Big Pharma exited from the antibiotics space one by one. And now they may be coming back together.

Pfizer, Eli Lilly, Novo Nordisk, Boehringer Ingelheim, Bayer Pharmaceuticals, Merck KGaA and the American Merck — one of the last giants standing — are teaming up to create a $1 billion for-profit venture to bet on small biotechs developing mid-stage antibiotics, Ed Silverman reported for STAT.

Government officials from Germany, Sweden, France and the UK, as well as representatives from Wellcome Trust and Pew Charitable Trusts, will join the companies to announce the initiative on July 9, Silverman wrote. The World Health Organization and the European Investment Bank are also involved in what is being billed as a new solution to the “antibiotic innovation challenge.”

As concerns about antibiotic resistance loom ever larger, though, the effort itself may count. “The thinking is that, ideally, if they put money in [the fund], this will serve them in the long run, but also make them look good,” reads a key quote. “They got pretty bad press when they walked out on antibiotics.”

Madam Therapeutics welcomes this very important initiative, and believes this is another sign that pharma and investors are getting back in the field.

Source: Endpointsnews

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