BARDA enters into public-private antibiotic development partnerships
BARDA's Broad Spectrum Antimicrobial programs, which grew from one partnership in 2010 to six in 2014, provide reimbursement to private partners in real time for drug development activities. The BARDA approach differs from other models including advanced market commitments, where reimbursement is provided after the purchase of a product.
The non-dilutive funding structure of those programs does not require repayment and does not dilute a shareholder's equity. The funding may also favorably impact the net present value calculation of BARDA's partners when they are considering whether to undertake development projects.
BARDA also recently entered into a partnership with GlaxoSmithKline to launch the Portfolio Partnership, a five-year, $200 million agreement. The partnership, formed by the Other Transactional Authority granted to the U.S. Department of Health and Human Services under the Pandemic and All Hazards Preparedness Act of 2006, supports a portfolio of candidate antibiotic therapies.
The portfolio-based partnership ensures that the agreement does not fall apart if one antibiotic candidate fails. BARDA and GlaxoSmithKline also share development costs and participate in joint strategic oversight. The agreement also offers both partners flexibility of scope when developing antibiotic candidates.