The Orphan Drug Act was enacted in which year?

The Orphan Drug Act was enacted in which year?

• A. The Orphan Drug Act was enacted in 1983
• B. The Orphan Drug Act was enacted in 1993
• C. The Orphan Drug Act was enacted in 1970
• D. The Orphan Drug Act was enacted in 2008

Answer: (A)

The key idea is recognizing a landmark law designed to boost drug development for rare diseases by offering incentives to sponsors. The Orphan Drug Act was enacted in 1983. It was created to fix a market failure: treatments for rare diseases often aren’t developed because the potential profits are too small. To encourage investment, the act provides incentives such as seven-year market exclusivity for the designated orphan drug, tax credits for qualifying clinical research, and potential grants and fee waivers. These incentives spurred pharmaceutical companies to pursue therapies that otherwise wouldn’t be financially viable, which is why the year 1983 is the correct answer.

The key idea is recognizing a landmark law designed to boost drug development for rare diseases by offering incentives to sponsors. The Orphan Drug Act was enacted in 1983. It was created to fix a market failure: treatments for rare diseases often aren’t developed because the potential profits are too small. To encourage investment, the act provides incentives such as seven-year market exclusivity for the designated orphan drug, tax credits for qualifying clinical research, and potential grants and fee waivers. These incentives spurred pharmaceutical companies to pursue therapies that otherwise wouldn’t be financially viable, which is why the year 1983 is the correct answer.