What type of drugs does the Orphan Drug Act seek to support?

The Orphan Drug Act is specifically designed to encourage the development of medications that address rare diseases and conditions, which are often overlooked by pharmaceutical companies due to the limited market potential. A rare disease, as defined in the context of this act, typically affects fewer than 200,000 individuals in the United States.

The incentives provided under the Orphan Drug Act include tax credits for clinical trial costs, grants for research, and a period of market exclusivity once the drug is approved. This support enables manufacturers to take on the financial risks associated with developing treatments for populations that are often small enough to be financially unfeasible for traditional drug development.

The other options, such as drugs for common illnesses, chronic conditions, or over-the-counter medications, do not align with the intentions of the Orphan Drug Act, which focuses specifically on the rare disease niche.