Rare Disease Business Not Such An Easy Road - Just Ask Pfizer
By John Mylant: The rare disease drug business can provide a windfall for pharmaceutical companies in their research as they develop drugs for diseases that are not very common in the general population. But it is not easy getting there. Pfizer (PFE) is a good example of that, as it found out with its drug Tafamidis.There's a reason why many drug companies have an interest in the rare disease business. There are many advantages, such as:
- Profits can be higher, since clinical trials for rare disease drugs are usually shorter and have fewer patients (this lowers costs).
- The Orphan Drug Act in the U.S. provides a 50% tax credit for the development of drugs that treat diseases affecting fewer than 200,000 patients.
- Drugs for rare diseases can find a quicker road to U.S. Food and Drug Administration approval.
Over the past five years, 22% of orphan drugs submitted to the FDA gainedComplete Story »