Orphan drugs are medications developed specifically to treat rare diseases, which affect a small percentage of the population. These diseases, often referred to as orphan diseases, may not attract significant investment from pharmaceutical companies due to their limited market potential. As a result, orphan drugs are essential for providing treatment options for patients with these conditions.
To encourage the development of orphan drugs, many countries offer incentives such as tax breaks, grants, and extended market exclusivity. In the United States, the Orphan Drug Act of 1983 was established to promote research and development in this area, helping to bring much-needed therapies to patients with rare diseases.