Orphan Exclusivity Working: NORD Report

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seven-year market exclusivity granted by FDA to orphan drugs intended to treat rare diseases is working as intended. “In nearly every case,” NORD says, “orphan exclusivity did not inappropriately prevent generics and biosimilars from entering the market. Instead, the lack of generic competitors can be credited to their prospective return on investment being too small.”

The report found that: 

  •          adding an orphan indication to an on-market drug does not correlate with a higher than average price increase;
  •          of the 503 approved therapies with an orphan indication at the time of the research, 217 were no longer covered by orphan exclusivity or patent protection, and 116 of the 217 had generic or biosimilar competition;
  •          median spending on the 101 orphan drugs without protection from competition and without competitors is only $8.6 million per year per drug;
  •         about 25% of orphan drug approvals target populations smaller than 5,000 patients in the U.S.; and
  •         since 2009, on-market common-disease drug prices have grown more every year, on average, than orphan drugs.

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