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Current Issues in the Rare Disease Area


This article was recently published in the European Journal of Health Economics Sept 28, 2011:


The impact of new (orphan) drug approvals on premature mortality from rare diseases

in the U.S. and France, 1999-2007

Frank R. Lichtenberg

10 January 2011

This research was supported by the American Enterprise Institute, Novartis, and Pfizer

Inc. The sponsors placed no restrictions or limitations on data, methods, or conclusions,

and had no right of review or control over the outcome of the research. I am grateful to

Segolene Ayme, Marie Georget, and Ana Rath of Orphanet for providing their data to

me.

The impact of new (orphan) drug approvals on premature mortality from rare diseases

in the U.S. and France, 1999-2007

Abstract

This paper investigates the impact of the introduction of new orphan drugs on

premature mortality from rare diseases using longitudinal, disease-level data obtained

from a number of major databases. The analysis is performed using data from two

countries: the U.S. (during the period 1999-2006) and France (during the period 2000-

2007). For both countries, we estimate models using two alternative definitions of

premature mortality, several alternative criteria for inclusion in the set of rare diseases,

and several values of the potential lag between new drug approvals and premature

mortality reduction.

Both the U.S. and French estimates indicate that, overall, premature mortality

from rare diseases is unrelated to the cumulative number of drugs approved 0-2 years

earlier, but is significantly inversely related to the cumulative number of drugs approved

3-4 years earlier. This delay is not surprising, since most patients probably don’t have

access to a drug until several years after it has been launched. Although the estimates for

the two countries are qualitatively similar, the estimated magnitudes of the U.S.

coefficients are about four times as large as the magnitudes of the French coefficients.

This may be partly due to greater errors in measuring dates of drug introduction in

France.

Our estimates indicate that, in the U.S., potential years of life lost to rare diseases

before age 65 (PYLL65) declined at an average annual rate of 3.3%, and that, in the

absence of lagged new drug approvals, PYLL65 would have increased at a rate of 0.9%.

Since the U.S. population age 0-64 was increasing at the rate of 1.0% per year, this means

that PYLL65 per person under 65 would have remained approximately constant. The

reduction in the U.S. growth rate of PYLL65 attributable to lagged new drug approvals

was 4.2%.

In France, PYLL65 declined at an average annual rate of 1.8%. The estimates

imply that, in the absence of lagged new drug approvals, it would have declined at a rate

of 0.6%. The reduction in the French growth rate of PYLL65 attributable to lagged new

drug approvals was 1.1%.

Frank R. Lichtenberg