The increase in the incidence of multidrug-resistant (MDR) bacteria has galvanized governments to stimulate industry efforts to develop new therapeutics to replace its current arsenal of antibiotics. It appears that this research and development stimuli in terms of economic incentives and market exclusivity is now gathering momentum, with a host of new companies formed, thanks to venture investments, and lucrative partnerships being inked. In this two-part article, the business and financial climate for developers of antibiotics will be examined along with the product pipeline progress that is being made.