What main function does the Orphan Drug Act provide to encourage drug development?

The Orphan Drug Act primarily aims to encourage the development of drugs for rare diseases, which are often overlooked in the pharmaceutical market due to the limited number of patients. One of the key functions of the Act is to offer tax incentives and expedited review processes for drug developers.

These tax incentives help to offset the high costs associated with research and development, making it more financially viable for companies to invest in drugs that may not otherwise be profitable due to a small target population. Additionally, fast reviews by regulatory agencies help bring these essential medications to market more quickly, ensuring that patients with rare conditions have access to necessary treatments sooner. This combination of incentives addresses the financial challenges faced by pharmaceutical companies and promotes innovation in treating rare diseases.

Other options may also discuss aspects of funding or cost management, but the primary overarching mechanism of the Orphan Drug Act is its focus on tax benefits and the speeding up of the regulatory process, making it attractive for companies to invest in the development of orphan drugs.