Orphan Drug Credit

The Orphan Drug Credit is a tax credit that is available to pharmaceutical companies that develop and market drugs for rare diseases. The credit is intended to encourage the development of drugs for rare diseases, which are often neglected by pharmaceutical companies because they are not profitable.

The Orphan Drug Credit is a 50% credit against the research and development costs of developing a drug for a rare disease. The credit is available for drugs that are approved by the Food and Drug Administration (FDA) for marketing in the United States. The credit is also available for drugs that are approved by the FDA for marketing in other countries, as long as the drug is not marketed in the United States.

The Orphan Drug Credit is a significant incentive for pharmaceutical companies to develop drugs for rare diseases. The credit can help to offset the high costs of research and development for these drugs. The credit can also help to make these drugs more affordable for patients.

The Orphan Drug Credit has been a successful program in encouraging the development of drugs for rare diseases. Since the program was created in 1983, more than 500 orphan drugs have been approved by the FDA. These drugs have helped to improve the lives of millions of patients with rare diseases.

The Orphan Drug Credit is a valuable program that helps to ensure that patients with rare diseases have access to the drugs they need. The credit is a cost-effective way to encourage the development of new drugs for rare diseases.