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Orphan drug prices
With the US Food and Drug
Administration (FDA) approving an
all-time record number of orphan drugs
in 2014, the pricing of these treatments
is set to come under increased
scrutiny, according to research and
consulting firm GlobalData. According
to Adam Dion, MS, Industry Analyst for
GlobalData, Big Pharma has shifted its
focus from large patient populations in
established therapeutic areas, such as
cardiovascular diseases and diabetes,
to developing orphan drugs for rare
diseases, which constituted 17 of the 41
new molecular entities approved by the
FDA last year.
He said: ‘The need for product pipeline
replenishment, quicker access to
commercialisation revenues and
attractive selling prices may partly
explain this new-found infatuation with
orphan drugs. Orphan drug developers
generally see significant return on
investment due to lower clinical trial
costs, particularly in Phase III where
patient recruitment is much smaller.
Approval times are also usually faster,
because these treatments tend to
receive Priority Review from the FDA.’
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