A Glimmer of Hope in the Gloom
For an investor, a crisis often spells opportunity, and this one is no different. The reason big pharma largely abandoned antibiotic research is simple economics. You take an antibiotic for ten days, whereas a cholesterol drug is for life. The maths just didn't add up. This created a vacuum, a dangerous void where innovation stalled and bacteria thrived.
But recently, something shifted. When a behemoth like GSK gets an FDA priority review for a new oral antibiotic, as it just did, it’s more than just good news for one company. To me, it’s a flare sent up from the regulator’s office. It signals that the authorities are finally, desperately, trying to incentivise the development of new weapons in this fight. They are essentially rolling out the red carpet for companies that can solve a problem that is spiralling out of control.
This regulatory tailwind is crucial. It suggests that the path to market for these vital drugs might become a little less arduous, a little more commercially viable. And where there’s a viable market, investors will surely follow.
