Orrin Hatch: “today I am introducing the Orphan Drug Act of 1997, legislation to extend permanently the orphan drug tax credit. I am…”

“today I am introducing the Orphan Drug Act of 1997, legislation to extend permanently the orphan drug tax credit. I am pleased that my good friend and colleague from Montana, Senator Baucus, is joining me. Similar legislation was introduced in the House last year by Representatives Nancy Johnson and Robert Matsui. I am confident that they will once again introduce legislation this year to make the credit permanent. Mr. President, this credit encourages private firms to develop treatments for rare diseases. As many of my colleagues know, we extended this medical research tax credit last year, but, it will expire on May 31 of this year. Since the 1983 enactment of the orphan drug tax credit we have seen very encouraging progress in developing new drugs to alleviate suffering from a number of so-called orphan diseases, those diseases that afflict a relatively small number of people. Because the process of research, development, and approval for new pharmaceuticals is so costly--running into hundreds of millions of dollars--the small market for a drug discourages drug companies from undertaking it. Mr. President, the incentive provided by this credit gives hope to individuals who suffer from such rare but devastating conditions as Tourette's syndrome. Huntington's disease, and neuro- fibromatosis, to name a few.”