Source
(June 25, 1938, ch. 675, § 525, as added Pub. L. 97–414, § 2(a), Jan. 4, 1983, 96 Stat. 2049; amended Pub. L. 99–91, § 3(a)(1), Aug. 15, 1985, 99 Stat. 387; Pub. L. 105–115, title I, § 125(b)(2)(F), (G), Nov. 21, 1997, 111 Stat. 2325, 2326.)
Amendments
1997—Subsec. (a).
Pub. L. 105–115, § 125(b)(2)(G), struck out “, certification of such drug for such disease or condition under section
357 of this title,” before “or licensing of such drug” in closing provisions.
Subsec. (a)(1) to (3).
Pub. L. 105–115, § 125(b)(2)(F), inserted “or” at end of par. (1), redesignated par. (3) as (2), and struck out former par. (2), which read as follows: “if the drug is an antibiotic, it may be certified for such disease or condition under section
357 of this title, or”.
1985—Subsec. (a).
Pub. L. 99–91 struck out “or” at end of par. (1), inserted par. (2), redesignated former par. (2) as (3) and struck out “before” after “product,”, and in last sentence inserted provisions relating to certification of such drug for disease or condition under section
357 of this title and substituted “licensing of such drug for such disease or condition under section
262 of title
42” for “licensing under section
262 of title
42 for such disease or condition”.
Effective Date of 1985 Amendment
Section 8 of
Pub. L. 99–91 provided that:
“(a) General Rule.—Except as provided in subsection (b), this Act and the amendments made by this Act [amending this section, sections
360bb,
360cc, and
360ee of this title, and sections
295g–1 and
6022 of Title
42, The Public Health and Welfare, and enacting provisions set out as notes under section
301 of this title and section
236 of Title
42] shall take effect October 1, 1985.
“(b) Exception.—The amendments made by sections
2,
3, and
6
(a) [amending this section and sections
360bb and
360cc of this title] shall take effect on the date of the enactment of this Act [Aug. 15, 1985]. The amendment made by section
6
(b) [amending section
6022 of Title
42] shall take effect October 19, 1984. The amendments made by section
7 [amending section
295g–1 of Title
42] shall take effect October 1, 1984 and shall cease to be in effect after September 30, 1985.”
Study
Pub. L. 100–290, § 3(d), Apr. 18, 1988,
102 Stat. 91, directed Secretary of Health and Human Services to conduct a study to determine whether the application of subchapter B of chapter V of the Federal Food, Drug, and Cosmetic Act,
21 U.S.C.
360aa et seq. (relating to drugs for rare diseases and conditions), and
26 U.S.C.
28 (relating to tax credit) to medical devices or medical foods for rare diseases or conditions or to both was needed to encourage development of such devices and foods and report results of the study to Congress not later than one year after Apr. 18, 1988.
Congressional Findings
Section 1(b) of
Pub. L. 97–414 provided that: “The Congress finds that—
“(1) there are many diseases and conditions, such as Huntington’s disease, myoclonus, ALS (Lou Gehrig’s disease), Tourette syndrome, and muscular dystrophy which affect such small numbers of individuals residing in the United States that the diseases and conditions are considered rare in the United States;
“(2) adequate drugs for many of such diseases and conditions have not been developed;
“(3) drugs for these diseases and conditions are commonly referred to as ‘orphan drugs’;
“(4) because so few individuals are affected by any one rare disease or condition, a pharmaceutical company which develops an orphan drug may reasonably expect the drug to generate relatively small sales in comparison to the cost of developing the drug and consequently to incur a financial loss;
“(5) there is reason to believe that some promising orphan drugs will not be developed unless changes are made in the applicable Federal laws to reduce the costs of developing such drugs and to provide financial incentives to develop such drugs; and
“(6) it is in the public interest to provide such changes and incentives for the development of orphan drugs.”