The Pharmaceutical Research and Manufacturers of America (PhRMA), a trade
association representing pharmaceutical manufacturers, has recently run a
series of ads claiming that weaker patent laws will reduce drug research
for rare diseases.
However, NORD says that patents have never provided ample incentive for
drug companies to develop treatments for rare diseases. That is why the
Orphan Drug Act of 1983 was enacted. This law provides seven guaranteed
years of marketing exclusivity without competition, as well as tax credits
for research expenses. It is these incentives, not patents, that have
spurred development of treatments for rare diseases.
Furthermore, according to a recent Tufts University study, despite these
financial incentives, large brand-name pharmaceutical companies have
developed only 28 percent of the new orphan drugs. Small biotechnology
firms have developed 65 percent.
NORD believes that PhRMA's ads are needlessly alarming rare-disease
patients by telling them that there is a significant link between patent
protection and rare-disease research. Instead, NORD is urging the
rare-disease community to recognize the importance of the Orphan Drug Act
in encouraging the development of new treatments and to support three bills
now being considered by the U.S. Senate and House of Representatives to
increase government support of rare-disease research.
Those bills are the Rare Diseases Act of 2001 (S. 1379), the
Rare Diseases Act of 2002 (H.R. 4013) and the Rare Diseases Orphan
Product Development Act of 2002 (H.R. 4014). Patents are not of major
importance to the orphan drug effort, but these three pending bills, which
would provide significant new funding to develop treatments for rare
diseases, are.
For additional information about patents and patent reform, contact
NORD's Vice President for Public Policy, Diane Dorman, at
ddorman@rarediseases.org.
Click here to view the ad published by NORD during the week of June 19,
2002, in two widely read Capitol Hill publications, Congress Daily
and Roll Call.