Growth Factors Identified for Current Orphan Drug Market

A new market research report by Kalorama Information (Rockville, MD, USA) identifies factors likely to have stimulated the current orphan drug market, with further growth expected for the next forecast period.

Drugs for treating rare conditions are commonly referred to as "orphan drugs." The global orphan drug market reached 61 billion in 2012, according to Kalorama. The new Kalorama report - "The World Market for Orphan Drugs" - states that the increasing incidence of diseases affecting the aged will drive the market to increase at a rate of 11.5% throughout the forecast period, reaching USD 105.2 billion by 2017. In the USA, the largest market, Congress determined that adequate therapies for many rare diseases had not been developed because companies could not expect an orphan drug to make sufficient profit; therefore, incentives were needed for developing such drugs. According to Kalorama, these incentives have worked, helping to create a thriving market for this sector of treatments.

The report breaks out the market by company and by category. Non-Hodgkin's lymphoma, multiple myeloma, renal disease, and osteoporosis are among the diseases where treatments are not sufficient, according to the report. "In these markets regulators have allowed new orphan therapies," said Bruce Carlson, publisher, Kalorama Information, "Pharmaceutical companies have seen an opportunity in developing drugs with reduced regulatory costs and incentivized development."

Kalorama's estimate relates to the market where only orphan drug-designation revenue is included. Other estimates may also include brand revenue not truly occurring from an orphan designation. A product available as an orphan drug in one country may be available under traditional marketing approval in another. Some products that gain orphan status are later granted approval and removed from the orphan drug database at the developer's request. Factors involved in also include reimbursement, regulation, disease status, and general development, all of which were taken into account in Kalorama's study.

The report also presents major and small pharmaceutical companies' activities within this drug category, their market share, and predicts leading market contributers.

Related Links:
Kalorama Information
Kalorama Orphan Drugs Report