developing new antibiotics in general is difficult in the US because there are many generic antibiotics that work well, so your pricing power is often quite low. but your R&D costs are still just as high as something like cancer, where you can charge hundreds of thousands a year per patient. so R&D dollars go to higher ROI assets. see novartis, which recently axed its antibiotics division
super resistant bugs are a big issue however and there is probably an investment case there, esp at a time like this when capital is so available. i dont know how hard it would be to develop drugs against particular resistant strains, how many patients get each infection / year, how long you have to intervene before pts die, etc, but i can imagine its a tough field
It isn't legal to sell a treatment for any disease or condition unless you've conducted multiple rounds of clinical trials proving that it is both safe and effective. Running these trials is fantastically expensive, especially when you don't know ahead of time which treatments will make it out the other side to become sellable products.
Pharma companies are good at getting things through these trial stages. But they can't afford to do it unless there's a patent-protected profit on the other side for the ones that work.
Thus the problem is that phages are essentially a virus picked up out of some pond muck or something. You can't really mass-produce them, and it wouldn't make sense to anyways, as the application for any one phage is very limited. You can't run a particular phage though a set of clinical trials - the effectiveness of a particular strain would be gone long before you got through the first phase. Making enough profit from selling it after commercialization once it made it through the clinical trials that it can't possibly ever pass is a completely absurd notion.
What we need to make phages more widely used isn't economic investment but a complete redo of how we legally require the healthcare industry to operate.
1) Even with resistance on the rise, we still have antibiotics that work. Phage therapy is a "someday we're going to need this...we think" type treatment.
2) There's no such thing as a "broad spectrum" phage. They're organism specific, and that means not only would you need to keep a phage library on hand, but you'd have to do a lot of diagnostic tests. That's going to be both expensive and tricky.
3) Phages are living things. Not only is that a weird regulatory framework to be in for a drug, but it also means that you need to be able to keep phage alive. In contrast, antibiotics are inert.
4) Phage therapy is also relatively new in the West, which means there's just less of a R&D infrastructure behind it.
There have been people working on commercializing phage therapy since I was in undergrad (I'm now a tenure-track professor). The problem is it's hard, and antibiotics are so much better as a treatment that there's kind of a ceiling on the excitement that they can generate.
Except the existing way is quickly no longer working, hence antibiotic resistance. Also, it's not speculative, phage therapy works.
Somewhat similar: I had to get several injections of the subunit anthrax vaccine that essentially doesn't work (even though live attenuated anthrax is far more effective) because some regulatory committee doesn't like the idea of live (or even whole cell) vaccines.
Phages are specific to particular bacteria, more specific than an antibiotic. This means you need to develop many more varieties of phage to cover the same ground.
These phages are perishable, and alive. That means you have to put much more effort into developing, and maintaining stocks.
Lastly, you need to have specific diagnoses of patients. You need to know which phage to give, based on the bacteria infecting the patient. This means more patient tests, and more time between arrival and treatment.
This all adds up the costs. Phage therapy is better suited to targeted diseases like MRSA than a replacement of chemotherapy.
https://www.motherjones.com/environment/2018/05/the-best-vir...
https://en.wikipedia.org/wiki/Phage_therapy