Antimicrobial Resistance Pricing and Reimbursement Scoping Study

Antimicrobial resistance (AMR) is a growing global crisis, making once-treatable infections increasingly difficult—sometimes impossible—to cure. Despite the urgent need for new antibiotics, the economic reality is stark: the traditional market model does not incentivise antibiotic research and development (R&D).

To address this, the Australian Government Department of Health and Aged Care engaged ACIL Allen to assess policy mechanisms that could incentivise the discovery and market entry of novel antibiotics in Australia.

What We Did

• Conducted a literature review, stakeholder consultations, and economic assessment
• Analysed the societal and economic impact of different incentive mechanisms
• Identified five priority mechanisms, including Accelerated Assessment & Approval (AAA) and Advance Market Commitments (AMC)

Key Recommendations

• Establish an AMR Taskforce to drive implementation
• Secure funding partnerships with international organisations
• Strengthen manufacturing capacity and industry collaboration
• Design and implement robust contracting and evaluation frameworks

Why This Matters

Without action, AMR could turn everyday infections into life-threatening conditions. By implementing targeted incentives, Australia can play a critical role in revitalising the antibiotic pipeline—both nationally and as part of a global solution.

A big thank you to our partners and stakeholders who contributed their insights and expertise.