Many companies, developing drugs to overcome germs resistant to common antibiotics, are suffering major money problems, and going out of business The New York Times is reporting.
The companies’ financial woes are undermining efforts to contain the spread of deadly, drug-resistance bacteria, according to the newspaper.
The Times noted that in recent months, antibiotic start-ups like Achaogen and Aradigm have gone belly up. Melinta Therapeutics recently warned it was running out of cash. And other companies are teetering.
“This is a crisis that should alarm everyone,” said Dr. Helen Boucher, an infectious disease specialist at Tufts Medical Center.
Each year, drug-resistant infections kill 35,000 people in the U.S. New antibiotics have proved effective in dealing with anthrax, bacterial pneumonia and E.coli.
But The Times noted that many companies have invested billions to develop new drugs, but have not found a way to make money selling them. Many hospitals are unwilling to pay high prices for the drugs.
The Times said public health experts are calling for the government to get involved. But it said political gridlock in Washington has blocked legislative efforts.
“If this doesn’t get fixed in the next six to 12 months, the last of the Mohicans will go broke and investors won’t return to the market for another decade or two,” said Chen Yu, a venture capitalist who has invested in the field.
Jeffrey Rodack ✉
Jeffrey Rodack, who has nearly a half century in news as a senior editor and city editor for national and local publications, has covered politics for Newsmax for nearly seven years.
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