An Orphan Drug is a pharmaceutical agent specifically developed to treat, diagnose, or prevent rare diseases or conditions. In the United States, a disease is considered rare if it affects fewer than 200,000 individuals. The Orphan Drug Act of 1983 incentivizes companies to develop drugs for these conditions by offering benefits such as tax credits, grant funding, and market exclusivity.
Orphan Drugs play a crucial role in the healthcare sector by addressing the unmet needs of patients suffering from rare diseases. Although these conditions affect a small portion of the population, they often demand urgent medical interventions. The financial incentives for developing Orphan Drugs encourage pharmaceutical innovation, ensuring that even those with rare conditions have access to effective treatment options.
Increased focus on Orphan Drugs helps bridge the gap in healthcare disparities, providing essential care and improving life expectancy for those afflicted with rare diseases. By fostering more research and development in this area, the healthcare system enhances overall patient care quality and fosters advancements in medical science.