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Market Structure, Economics, and Financing of Orphan Drugs in the United States

Market Structure, Economics, and Financing of Orphan Drugs in the United States: A Comprehensive Review from 1983 to 2022


Author: Adam Devine

Ladue Horton Watkins High School, St. Louis, Missouri, United States


Abstract

Orphan drugs target rare diseases. However, because the patient population to which these drugs apply is small, there is limited revenue that can be realized from their development, hence no rational profit-seeking company would choose to enter this market. With the passing of the Orphan Drug Act in 1983, companies in the United States that develop drugs are provided tax breaks and other financial incentives. This review paper describes the financing, market structure, and economics of orphan drugs since 1983 and it’s evolution till 2022.



Market Structure, Economics, and Financing of Orphan Drugs in the United States_ A Compreh
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