Orphan Drugs: An Introduction

The video discusses the high costs and market dynamics of orphan drugs, which are medications for rare diseases. It explains the Orphan Drug Act, which provides market exclusivity to encourage development. The act's effectiveness is debated, with some arguing it has led to significant drug approvals, while others point out the high prices and potential over-incentivization. The economic implications of orphan drug pricing and revenue are analyzed, highlighting the market's inelasticity and manufacturers' pricing power. Future considerations for orphan drug development and legislation are also discussed.

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