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Orphan drugs are medicinal products intended for prevention or treatment of life-threatening or very serious diseases or disorders that are rare. These drugs are called orphan because the conditions for which these drugs are developed affect very few people. The availability of less patient population also creates hindrance in clinical trials. Furthermore, the process from the discovery of a new orphan drug to its marketing is expensive and very uncertain. These factors act as hindrance in orphan drugs development.
 
To overcome these restraints and attract pharmaceutical players to invest in global orphan drugs market, governments across the globe are providing grants and tax credits to the players. According to a new report published by RNCOS, named, “Global Orphan Drugs Market Outlook 2020” these grants and tax credits helps the players to reduce their cost of developing the orphan drugs.
 
In this regard, the Orphan Drug Act, which came into effect in 1983, encourages the development and marketing of orphan drugs for the treatment of rare diseases and conditions. Through this act, several incentives are provided to pharmaceutical companies to stimulate the development of orphan drugs. One such incentive is the availability of grants. In this regard, 12-15 grants are awarded annually to academic-based researchers or to the companies for the research and development of new orphan drugs.
 
Approximately US$14 Million are provided per year to sponsor companies through the orphan drug grant program, which is applicable to drugs, biologics, medical devices or even medical foods. While this amount may seem small for traditional drugs, it has a significant impact in the orphan drug arena, where trials are typically smaller and shorter in duration. The other form of economic incentive that is being provided is the tax credit. Tax credits can cover up to 50% of the clinical trial costs, and user fees, which are often a hindrance to orphan drug development, may be waived. In 2014, more than US$2 million in user fees were waived for sponsors investigating potential rare disease therapies. Apart from US, these grants and tax credits are also being provided in other countries such as EU, Japan and Australia to aid in the growth of orphan drug industry.
 
For FREE SAMPLE of this report visit: http://www.rncos.com/Report/IM805.htm
 
Check Related REPORTS on: http://www.rncos.com/Healthcare_Industry.htm