Antibiotics Industry ESG Thematic Report, 2023

Environmental, Social, and Governance (ESG) in the Antibiotics Industry

Three diverse non-financial factors, Environment, social and governance are pushing the investment trend to become more inclusive, responsible in terms of values and ethics.  

Industry leaders in the antibiotics market have been creating a positive income in the arena of ESG, especially the social aspect, where through the proper production and distribution, they have impacted affirmatively on health at social scale. The research and development in the industry is taking this step further, where the top companies have been focusing on producing the medicines focused on the patient needs by collecting related data. Certain antimicrobial resistant diseases such as Enterobacteriaceae and P. aeruginosa are some of the antimicrobial resistant diseases that have been prevalent in the developed countries.

Due to the aforementioned diseases, the key leaders of the company have been focusing on the research and development to combat and to bring a more positive outcome in the area of social development of ESG.

ESG Trends

The products of the antibiotics industry have created a positive impact on the lives of the consumers. In recent times, the antibiotics products have been deployed to fight Enterobacteriaceae. Two of the key leaders of the market have collaborated, developed, and produced a novel medication to fight the infections caused by the Enterobacteriaceae.

The Enterobacteriaceae is one of the kinds of antimicrobial resistant, which exists around 40% in the developed countries. Conversely there are a few challenges in terms of ESG, mainly in the sphere of social pillar of ESG.

The phenomenon of antibiotic resistance or antimicrobial resistance has been observed in recent times. This is due to the exposure of bacteria to the antibiotics, which over a period of time, mutates its genes and develops resistance to the antibiotics. There are significant influences that this creates on businesses and countries within the policy landscape. Also, this has a direct impact on the United Nations’ Sustainable Development Goals (SDGs) – SDG 3: Good health and Wellbeing and SDG 16: Peace, Justice, and Strong Institutions.

Manufacturing of antibiotics at commercial scale, is one of the factors, which involves the emissions of the products to the environment, where different kinds of pathogens exist. When such pathogens are exposed to intense amounts of antibiotics, they transform into AMR (Antimicrobial Resistant) and the area of such exposure is considered as hot spots of AMR, when such AMR is contacted by humans, they can be lethal to human health at community level.

Further, the components of the antibiotics which are known to be inactive ingredients, used for decreasing the number of doses and to increase the therapeutic efficacy by targeting the affected area are known to cause side effects.

According to a report, at least 41.3% of the antibiotics market products contain more than 250mg of the inactive ingredients per dose. The data related to the mass and composition of the inactive ingredients are not declared. It has been reported that more than 90% of the products contain at least one allergic reaction caused due to these inactive ingredients. Reactions and allergies such as Branchospasm and Gastrointestinal disorders have been reported in the aforementioned report which can have a significant impact on vulnerable communities and affect SDG 3 and SDG 10 by decreasing health and wellbeing among vulnerable communities, increasing the minority gap. 

Growth of the Antibiotics Market

The antibiotics market at global scale was valued at USD 40.7 billion in the year 2020 and is expected to grow with a CAGR (Compound Annual Growth Rate) of 4.5% per annum from 2021 to 2028. The rising prevalence of the AMR related infections and diseases as well as the development of the drugs to combat these infections, creates a positive effect on the social scale of the ESG by impacting the community health.

Key Companies in this Theme

    • Merck & Co., Inc.

    • AbbVie

    • Pfizer Inc.

    • Melinta Therapeutics

    • Basilea Pharmaceutica Ltd.

    • Tetraphase Pharmaceuticals

Scope of the Antibiotics Industry ESG Thematic Report:

    • Macro-economic and ESG-variable analysis of the industry, including regulatory, policy, and innovation landscape

    • Key insights on infrastructure developments and ESG issues affecting the theme

    • Identify key initiatives and challenges within the industry

    • Identify ESG leaders within the industry

    • Understand key initiatives and the impact of companies within the sector to fuel an informed decision-making process

    • Analysis of industry activities based on multi-media sources, including significant controversies and market sentiment

Key Aspects of the Antibiotics Industry ESG Thematic Report:

    • Offers a global perspective of the antibiotics industry and the policies and measures taken by the players, for overcoming the challenges faced in terms of Environment, Social and Governance.

    • Key insights into the sustainability practices of major players in the market.