Market Challenges And Opportunities

Developing orphan drugs that are used to treat rare diseases do not have a high profit margin for the manufacturers and prolong timeline for product development and manufacturing, uncertain and expensive, are the factors hindering the growth of orphan drugs market. However, the untapped emerging market and development of novel indications for designated orphan drugs is expected to create various opportunities in the orphan drugs industry.

Initiatives taken by government to increase the investment in orphan drugs development driving the growth of orphan drugs market.

Key players operating the orphan drugs market are Acorda Therapeutics, Actelion Pharmaceuticals Ltd., Amgen, Alexion Pharmaceuticals, Baxter international, Bayer healthcare pharmaceuticals, Biomarin Pharmaceuticals, Novartis, F.Hoffmann-La Roche AG, Johnson and Johnson and many others. The increase in investments, and some initiatives taken by government helping the orphan drug manufacturers. For instance, U.S. government provides 50% of tax credit on the research and development expenses spent on the orphan drugs development by manufacturers. However the high cost of the orphan drugs and generation of small sales from it is amongst those factors which is lowering the interest of companies for market.