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Harvard Case - The Antibiotics Crisis: Exploring and Maintaining Partnership Models

"The Antibiotics Crisis: Exploring and Maintaining Partnership Models" Harvard business case study is written by Shalini Mansharamani, Murat Tarakci. It deals with the challenges in the field of Business & Government Relations. The case study is 18 page(s) long and it was first published on : Dec 31, 2020

At Fern Fort University, we recommend a multi-pronged approach to address the antibiotic crisis, focusing on strengthening public-private partnerships, fostering innovation, and promoting responsible use. This approach involves a collaborative effort between governments, pharmaceutical companies, research institutions, healthcare providers, and consumers.

2. Background

The case study highlights the global crisis in antibiotic development, driven by factors such as declining profitability for pharmaceutical companies, increasing regulatory hurdles, and the emergence of antibiotic-resistant bacteria. This crisis threatens to reverse decades of progress in public health and has significant economic and social implications. The case focuses on the role of public-private partnerships in addressing this crisis, examining the challenges and opportunities associated with collaboration between governments and the private sector.

The main protagonists are:

  • Governments: Facing increasing pressure to address the antibiotic crisis, governments are seeking innovative solutions to incentivize research and development, promote responsible use, and ensure access to essential antibiotics.
  • Pharmaceutical Companies: Under pressure from declining profitability and regulatory complexities, pharmaceutical companies are hesitant to invest in antibiotic research and development.
  • Research Institutions: Universities and research institutions are actively involved in developing new antibiotics and exploring alternative solutions, but often lack the resources and infrastructure to translate research into commercial products.
  • Healthcare Providers: Faced with rising antibiotic resistance, healthcare providers are seeking ways to optimize antibiotic use, reduce unnecessary prescriptions, and educate patients about responsible antibiotic use.
  • Consumers: Consumers play a vital role in promoting responsible antibiotic use by understanding the importance of completing treatment courses and avoiding unnecessary antibiotic use.

3. Analysis of the Case Study

The case study can be analyzed using the following frameworks:

1. Porter's Five Forces:

  • Threat of New Entrants: The high cost of antibiotic development and regulatory hurdles create a significant barrier to entry for new players.
  • Bargaining Power of Buyers: Governments and healthcare providers have significant bargaining power due to their large purchasing volumes, but they are also reliant on pharmaceutical companies for essential antibiotics.
  • Bargaining Power of Suppliers: Pharmaceutical companies have a strong bargaining position due to their control over essential antibiotics, but they are also subject to government regulation and public pressure.
  • Threat of Substitutes: Alternative therapies and preventive measures are emerging as potential substitutes for antibiotics, but they may not be effective for all infections.
  • Competitive Rivalry: Competition among pharmaceutical companies is intense, but the focus on developing new antibiotics is limited due to the financial and regulatory challenges.

2. Public-Private Partnership Framework:

  • Shared Goals: Both governments and pharmaceutical companies share a common goal of addressing the antibiotic crisis.
  • Resource Complementarity: Governments can provide funding, regulatory support, and market access, while pharmaceutical companies possess the technical expertise and infrastructure for research and development.
  • Risk Sharing: Public-private partnerships can help mitigate the financial and regulatory risks associated with antibiotic development.
  • Trust and Transparency: Building trust and transparency between partners is crucial for successful collaboration.
  • Governance and Monitoring: Effective governance structures and monitoring mechanisms are essential to ensure accountability and alignment with shared goals.

4. Recommendations

To address the antibiotic crisis, we recommend the following actions:

1. Strengthening Public-Private Partnerships:

  • Government Incentives: Governments should provide tax incentives, grants, and accelerated approval pathways to encourage pharmaceutical companies to invest in antibiotic research and development.
  • Market Pull Mechanisms: Governments should implement market pull mechanisms, such as prize competitions and advance market commitments, to incentivize the development of new antibiotics.
  • Public-Private Research Consortia: Governments should support the formation of public-private research consortia to pool resources and expertise, accelerating the development of new antibiotics.
  • Global Collaboration: Governments should collaborate internationally to harmonize regulations, share best practices, and promote global access to essential antibiotics.

2. Fostering Innovation:

  • Open Innovation Platforms: Governments and pharmaceutical companies should create open innovation platforms to facilitate collaboration between researchers, entrepreneurs, and industry partners.
  • Investment in Basic Research: Governments should invest in basic research to understand the mechanisms of antibiotic resistance and explore alternative therapeutic approaches.
  • Supporting Emerging Technologies: Governments should support the development and deployment of new technologies, such as artificial intelligence and machine learning, to accelerate antibiotic discovery and development.

3. Promoting Responsible Use:

  • Education and Awareness Campaigns: Governments and healthcare providers should launch public education campaigns to raise awareness about the importance of responsible antibiotic use.
  • Antibiotic Stewardship Programs: Healthcare providers should implement antibiotic stewardship programs to optimize antibiotic use, reduce unnecessary prescriptions, and monitor antibiotic resistance trends.
  • Surveillance and Monitoring: Governments should establish robust surveillance systems to monitor antibiotic resistance patterns and track the effectiveness of interventions.

5. Basis of Recommendations

The recommendations are based on the following considerations:

  • Core Competencies and Consistency with Mission: The recommendations align with the core competencies of governments and pharmaceutical companies, leveraging their respective strengths to address the antibiotic crisis.
  • External Customers and Internal Clients: The recommendations consider the needs of patients, healthcare providers, and the broader public, ensuring access to essential antibiotics and promoting responsible use.
  • Competitors: The recommendations acknowledge the competitive landscape and encourage collaboration among stakeholders to address the shared challenge of antibiotic resistance.
  • Attractiveness: The recommendations are attractive from a financial and social perspective, offering potential for economic growth, improved public health, and reduced healthcare costs.
  • Assumptions: The recommendations are based on the assumption that governments and pharmaceutical companies are willing to collaborate and invest in long-term solutions to the antibiotic crisis.

6. Conclusion

Addressing the antibiotic crisis requires a collaborative and innovative approach. By strengthening public-private partnerships, fostering innovation, and promoting responsible use, governments, pharmaceutical companies, research institutions, healthcare providers, and consumers can work together to ensure the continued availability of effective antibiotics for future generations.

7. Discussion

Alternative approaches to addressing the antibiotic crisis include:

  • Increased government regulation: This approach could involve stricter regulations on antibiotic use and development, but it could also stifle innovation and increase costs.
  • Market-based solutions: This approach could involve relying on market forces to incentivize antibiotic development, but it may not be sufficient to address the public health needs.
  • Focus on alternative therapies: This approach could involve exploring non-antibiotic treatments, but it may not be effective for all infections.

The recommendations presented in this case study solution are based on the assumption that a collaborative approach is the most effective way to address the antibiotic crisis. However, there are risks associated with this approach, including:

  • Lack of trust and transparency: Building trust and transparency between partners is crucial for successful collaboration, but it can be challenging to achieve in complex public-private partnerships.
  • Misalignment of incentives: Governments and pharmaceutical companies may have different incentives, which could lead to conflicts of interest and hinder progress.
  • Political interference: Political factors can influence decision-making and potentially undermine the effectiveness of public-private partnerships.

8. Next Steps

To implement the recommendations, the following steps should be taken:

  • Establish a task force: Form a task force consisting of representatives from governments, pharmaceutical companies, research institutions, healthcare providers, and consumer groups to develop a comprehensive strategy for addressing the antibiotic crisis.
  • Develop a roadmap: The task force should develop a roadmap outlining specific actions, timelines, and milestones for implementing the recommendations.
  • Secure funding: Governments and pharmaceutical companies should commit to providing adequate funding to support research, development, and implementation of the strategy.
  • Monitor progress: Regular monitoring and evaluation are essential to track progress, identify challenges, and adjust the strategy as needed.

By taking these steps, governments and the private sector can work together to ensure the continued availability of effective antibiotics and safeguard public health for future generations.

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Case Description

The case focuses on the antibiotics crisis / antimicrobial resistance, a global health challenge as described by the World Health Organization. It refers to the overuse, or rather the misuse, of antibiotic medications as bad bacteria multiply and take over the good ones. This makes it difficult for current pharmaceutical companies and other medical institutions to develop new drugs and is becoming a serious threat to human life. It can be deemed as a silent pandemic. Currently, the perception is that senior managers at pharmaceutical companies are having a difficult time in finding the best methods to tackle this challenge due to its complex nature. This case follows the decision-making journey of a pharmaceutical company, Evotec, and narrates how the protagonist rises up to the challenges of drug discovery by partnering with other key players (pharmaceuticals, government institutions, education institutions, etc).

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