FDA Orphan Drug Requests Could Start To Rely More On Non-Profitability Criteria

The Food & Drug Administration may start to see more requests for orphan drug designation based on a little-used criterion under the Orphan Drug Act: a drug that is not expected to recoup the development costs before the end of the seven-year exclusivity period.

Drug sponsors may begin taking greater advantage of a little-used criterion for receiving an orphan drug designation from the Food & Drug Administration: a product that is not expected to be profitable for use in that disease within seven years of marketing approval (the length of the exclusivity period available under the Orphan Drug Act).

Essentially all orphan drug designations granted to date have been based on the justification that the product would treat a disease or condition affecting less than 200,000 patients in the...

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