Orphan Drug Act

The Orphan Drug Act, passed in 1983, is a U.S. law designed to encourage the development of treatments for rare diseases, affecting fewer than 200,000 people. Companies creating these “orphan drugs” can receive various incentives, such as tax breaks, grant funding, and seven years of exclusive marketing rights after the drug is approved. This act aims to make it financially viable for pharmaceutical companies to invest in research for conditions that, while affecting small populations, still require effective treatments. Ultimately, it seeks to improve the quality of life for people suffering from rare diseases.