What is the purpose of the Orphan Drug Act of 1983?

The Orphan Drug Act of 1983 was specifically established to incentivize the development of drugs for rare diseases, which are often overlooked due to the limited market potential. Rare diseases, by definition, affect a small percentage of the population, making it less attractive for pharmaceutical companies to invest in research and development for these conditions. The Act provides various incentives, including tax credits, grants, and seven years of market exclusivity for new orphan drugs. This support encourages pharmaceutical companies to pursue the development of treatments that would otherwise be neglected, addressing significant unmet medical needs for individuals with rare conditions.

Other options, while related to pharmaceutical development, do not align with the specific intent of the Orphan Drug Act. For instance, the promotion of generic drug production focuses on increasing market competition for existing medications rather than addressing the development of new drugs for rare diseases. Similarly, developing drugs for common diseases does not relate to the core mission of the Orphan Drug Act, which is to support treatments for conditions that impact fewer patients. Reducing the cost of medications is an important healthcare issue but is not the primary goal of this legislation.