That startup won't have the couple hundred millions needed to get the compound through clinical in the first place. So, what they do is they team up with "Big P

That startup won't have the couple hundred millions needed to get the compound through clinical in the first place. So, what they do is they team up with "Big Pharma" (I hate that dog whistle) and get royalties. For the pharma corp. it makes sense as the new antibiotic will also take market share from the competition, so they have a net gain. If they project to lose 2.5bn on their existing drug, spend 1bn for purchasing the startup and make 7bn on the new drug, why on earth would they buy the startup to shut it down?