Trinity College Trinity College Digital Repository Senior Theses and Projects Student Scholarship Spring 2015 Orphan Drug Development: Incentives Under the Orphan Drug Act Sara H D Smith Trinity College,
[email protected] Follow this and additional works at: https://digitalrepository.trincoll.edu/theses Part of the Business Law, Public Responsibility, and Ethics Commons, Food and Drug Law Commons, Intellectual Property Law Commons, Law and Economics Commons, and the Pharmacoeconomics and Pharmaceutical Economics Commons Recommended Citation Smith, Sara H D, "Orphan Drug Development: Incentives Under the Orphan Drug Act". Senior Theses, Trinity College, Hartford, CT 2015. Trinity College Digital Repository, https://digitalrepository.trincoll.edu/theses/486 ORPHAN DRUG DEVELOPMENT: INCENTIVES UNDER THE ORPHAN DRUG ACT By Sara H D Smith A Thesis Submitted to the Department of Economics of Trinity College in Partial Fulfillment of the Requirements for the Bachelor of Arts Degree Economics 498-99 04/09/15 ABSTRACT After describing the intellectual property and regulatory environment for orphan drugs in the United States, this thesis compares the investment decisions in the orphan drug market with the larger pharmaceutical industry. A series of case studies trace the development paths of different orphan products using information collected through the Food and Drug Administration (FDA) Approved Drug Product and Orphan Drug Product Designation Databases. In addition to this analysis, difference-in-differences estimates calculated using annual revenues compare the relative success of different orphan products under the current incentive system. This study finds that partial orphan drugs are associated with larger revenue growth. Lastly, this study proposes several policy prescriptions as alternatives to the current legislation.