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Drugs for rare diseases: Influence of orphan designation status on price

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  • Eline Picavet
  • Marc Dooms
  • David Cassiman
  • Steven Simoens

Abstract

The literature indicates that the expenditure on orphan drugs will be increasing over the coming years. The market for orphan drugs has inherent market characteristics that sometimes result in high prices. The aim of this study was to analyse whether awarding orphan designation status has an influence on the price setting of drugs for rare disease indications. To this effect, prices of designated orphan drugs were compared with other non-designated drugs for rare disease indications. We identified 28 designated orphan drugs and 16 comparable non-designated drugs for rare disease indications for which we collected official hospital prices (per defined daily dose) in Belgium in 2010. Orphan-designated drugs had a higher median price (€138.56 [interquartile range; IQR €406.57]) than non-designated drugs (€16.55 [IQR €28.05]) for rare disease indications (p > 0.01). In conclusion, our results suggest that awarding orphan designation status in itself is associated with higher prices for drugs for rare disease indications. In order to gain full insight into orphan drug pricing mechanisms, future research should focus on collecting information about the different factors influencing orphan drug pricing. Copyright Adis Data Information BV 2011

Suggested Citation

  • Eline Picavet & Marc Dooms & David Cassiman & Steven Simoens, 2011. "Drugs for rare diseases: Influence of orphan designation status on price," Applied Health Economics and Health Policy, Springer, vol. 9(4), pages 275-279, July.
    • Handle: RePEc:spr:aphecp:v:9:y:2011:i:4:p:275-279
    DOI: 10.2165/11590170-000000000-00000
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    References listed on IDEAS

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    1. Javier Orofino & Javier Soto & Miguel Casado & Itziar Oyagüez, 2010. "Global spending on orphan drugs in France, Germany, the UK, Italy and Spain during 2007," Applied Health Economics and Health Policy, Springer, vol. 8(5), pages 301-315, September.
    2. Thomas Hemphill, 2010. "Extraordinary Pricing of Orphan Drugs: Is it a Socially Responsible Strategy for the U.S. Pharmaceutical Industry?," Journal of Business Ethics, Springer, vol. 94(2), pages 225-242, June.
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    Cited by:

    1. Degtiar, Irina, 2017. "A review of international coverage and pricing strategies for personalized medicine and orphan drugs," Health Policy, Elsevier, vol. 121(12), pages 1240-1248.
    2. Khristina Fauvelle, 2012. "Les médicaments orphelins : rétrospective et perspectives du marché européen Orphan drugs : retrospective and prospective analysis of the european market," Working Papers hal-00752254, HAL.
    3. Fontrier, Anna-Maria, 2022. "Market access for medicines treating rare diseases: Association between specialised processes for orphan medicines and funding recommendations," Social Science & Medicine, Elsevier, vol. 306(C).

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