39.
In the United States, Orphan Drug Act, 1983 defines the term 'rare
disease or condition' to mean any disease or condition which occurs so
infrequently that there is no reasonable expectation that the cost of
developing and making available a drug for such disease or condition will be
recovered from sales of such a drug. The Orphan Drug Act, 1983 not only
extends tax credit as well as patent term of such drugs but the government
also gives grants and enters into contracts with entities to assist in defraying
the costs of expenses incurred in connection with the development of drugs.
40.
The European Union Regulation 1999 provides incentive of market
exclusivity to the sponsors of orphan drugs. Further, through the
EUROPLAN, the European Union has mandated that each member country
develop a National Strategy Plan for rare diseases comprising a seven step
intervention, viz. policy making, definition and codification of rare diseases,
research on rare disease, creation of centres of expertise for rare diseases,
gathering expertise at EU level, empowering patient organizations and
sustainability of the strategies.
41.
Several other countries such as Japan, Australia and Israel have
developed policies/strategies to combat the problems of rare diseases and
orphan drugs.
NO POLICY/STRATEGY IN PLACE IN INDIA WITH REGARD TO
ORPHAN DRUGS
42.
Unfortunately, the Government of India does not have any policy
measure in place to address rare diseases, particularly those of a chronic
nature. All the Central and State schemes at the highest provide for a onetime grant for life-saving procedures and do not contemplate continuous
W.P.(C) 7279/2013
Page 20 of 41