Not so bad

Why halving the Orphan Drug Tax credit won’t have much impact on investment

The decision by Congress to cut the Orphan Drug tax credit in half in the tax reform law is unlikely to substantially reduce investment in medicines for rare diseases, according to drug developers and public policy scholars. The reason is that other more powerful incentives remain in place, and cost-containment efforts have not yet diminished pricing power for Orphan drugs in the U.S.

The cut actually represents a victory of sorts for Orphan Drug developers. After the House of

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