What measure is a key component of the Orphan Drug Act?

The key component of the Orphan Drug Act is tax incentives for orphan drug development. This legislation was established to encourage the development of drugs for rare diseases and conditions, which often lack sufficient financial incentives for pharmaceutical companies to invest in them. By providing tax credits for research and development costs, as well as other financial incentives, the Act aims to foster innovation in treating these less common but impactful health issues. This encourages pharmaceutical companies to allocate resources towards developing new therapies that might otherwise be neglected due to limited market potential. The tax incentives effectively lower the financial barriers associated with orphan drug development, promoting a more supportive environment for tackling rare diseases.