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What are orphan drugs and why should I invest in them?

what are orphan drugs and why should i invest in them

Every day, research and development for orphan drugs are made to improve the health of thousands of people. Investors are needed for it.

Recent data show that there are currently 138 thousand 691 medical research for drug development. The figures, published by the US National Institutes of Health, point out how many billions of dollars are spent by several companies in the industry to cure diseases worldwide.

Many of these researches focus on so-called orphan drugs, medicines and treatments that target rare diseases, which affect approximately 300 million people around the world.

What then would be the advantages of investing in orphan drug developers?

Orphan drugs development

First, let’s talk about the lack of competitors. The main reason to develop this type of drug is that most large pharmaceutical companies are discouraged from spending huge amounts of resources on what they consider a small group of patients, a minimum market.

Lack of competition is a key component to the success of small biotech companies such as Revive Therapeutics, a Canadian firm that has FDA-approved drugs for this type of patient and has several investigations that could lead to good returns on investment.

Another benefit is the long patent protection periods offered by the authorities, for having decided as a company to invest in research and development for health. The introduction of an orphan drug on the market involves a considerable amount of investment, so the Food and Drug Administration (FDA) in the United States gives these drugs seven years of exclusivity from the approval date.

This means that the orphan drug is protected for a long time, so there will be significant resources for the company and its investors to have exclusivity.

After large amounts invested in what big pharmaceutical companies call “a small population”, orphan drugs often carry very high price tags because of their rare nature and lack of competition. For example, there are companies that offer drugs to treat Hunter syndrome at a cost of about $375,000 per patient per year. Many governments know this and offer subsidies and support to relatives at a high cost.

Another important factor to consider is the approval time, which is faster. This could be the biggest advantage to getting orphan drug status as laboratories and the FDA work hand in hand to bring these life-changing treatments to millions of patients.

These are part of some of the professionals who can take as an investor to note that allocating resources to minority health care pharmacies is also a business, so do not waste time in supporting these developments, Since the bet has the balance in your favor. What do you expect to invest?

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