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European Orphan Drug Proposals Will Boost Pharma Industry - 18Sept 1999


European ministers have provided an incentive for the development of drugs for rare diseases that seems likely to benefit the pharmaceutical industry, particularly the biotechnology sector. The ministers in the EU responsible for single market measures have set aside a sizeable budget to encourage industry to produce therapies for rare disease, along the lines of the ‘Orphan Drug’ legislation in the US. Since its introduction in the US in 1984, biotechnology companies have made some 85% of all applications for special status. Indeed, some firms have been created specifically to exploit the potential of ‘orphan drugs’, such as Orphan Medical.

In Europe, the draft legislation still has to be approved by the European Parliament but it allows for:

  • Exclusive marketing rights for a minimum of six and a maximum of ten years
  • Complete or partial waiver of the Euro200,000 EMEA fee for obtaining EU-wide approval
  • Access to European Community funds for research into rare diseases
  • Free advice from the EMEA on clinical trial protocols

These incentives are designed to allow companies some leeway to develop drugs for the treatment of rare diseases. Similar incentive schemes are also available in Japan and Australia. They have been behind the development of products such as the beta-interferons for multiple sclerosis, Enbrel, Epogen and Prograf. Indeed, IMS HEALTH’s R&D focus database has records on more than 220 marketed and pipeline orphan drugs.

The US Postition

In the US, where orphan drug designation brings seven years of marketing exclusivity, the original definition of a rare disease was amended in 1984 to:
"Any disease or condition which (a) affects less than 200,000 persons in the US or (b) affects more than 200,000 persons in the US but for which there is no reasonable expectation that the cost of developing and making available in the US a drug for such disease or condition will be recovered from sales in the US of such a drug."

See Also: Rare diseases set to get more drug therapies
European proposals get warm welcome
Orphan drugs can be successful
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