Pharmaceutical companies profit from rare diseases, report finds

Incentives intended to stimulate the development of more treatments for rare diseases are being exploited to boost the profits of pharmaceutical companies, new research from the University of Liverpool shows. Researchers found that companies which market drugs for rare diseases (known as orphan drugs) are five times more profitable and have up to 15% higher market value than other drug companies. The study, carried out by experts from the University of Liverpool and Bangor University, examined the performance of 86 publicly-listed companies which produce nearly 200 orphan drugs. It did this by comparing with 258 matched control companies which are not manufacturers of orphan drugs. Rare diseases Dr Jannine Poletti-Hughes of the University of Liverpool Management School , said: 'Our findings confirm previous concerns that companies are profiting excessively, and do this by setting very high prices on treatments for rare diseases.' Diseases which affect less than five in 10,000 of the population are considered to be rare. Without incentives, companies would not consider it commercially worthwhile to invest in new treatments. Regulations in place since 2000, has seen 122 orphan drugs being authorised for the benefit of patients suffering from rare diseases.