
Developing treatments for rare diseases, known as orphan drugs, presents a range of unique challenges from the outset, from limited patient data to intricate regulatory pathways, difficulty in patient recruitment, implementation, and significant financial risks. Overcoming these barriers is crucial for the success of biopharma companies and, more importantly, for the millions of patients worldwide whose lives depend on these rare disease therapies.
Robust regulatory frameworks for orphan drugs are designed to incentivise development in areas typically considered commercially unviable due to their limited patient populations. In the United States, the Orphan Drug Act of 1983 set a significant precedent, providing biopharmaceutical companies with substantial incentives such as seven years of market exclusivity, tax credits, and fee waivers. These incentives have influenced similar frameworks in the European Union and Japan, where the European Medicines Agency (EMA) and Japan’s Pharmaceuticals and Medical Devices Agency (PMDA) have adopted comparable measures to promote innovation in rare disease therapies. China has also followed suit, with the National Medical Products Administration (NMPA) offering expedited approval processes for drugs addressing urgent clinical needs, including permits for orphan drugs to receive approval based on foreign clinical trial data, as well as reduced VAT on imported orphan drugs.
A GlobalData analysis of 2024 launch trends for selected drugs found that there was a continued trend and significant investment in oncology, with 47% of approved and priced drugs falling within this therapy area, followed by drugs for neurological disorders. Of those selected drugs in this review, 53% of brands had an orphan drug designation. [1]
Despite these supportive measures, sponsors face significant financial risks due to high drug discovery and clinical trial costs driven by limited, dispersed patient populations. Traditional large-scale trials are impractical, increasing costs per patient and complicating data collection. Securing adequate funding requires innovative financial strategies and partnerships. Additionally, the substantial investments and small patient populations often result in high orphan drug prices, creating tension between developers seeking cost recovery and healthcare providers advocating affordability.
Overcoming drug development challenges through collaboration, innovation, and alternative trial designs
To navigate the intricacies of demonstrating drug efficacy with limited clinical data, companies frequently rely on alternative trial designs and methodologies. Adaptive trial designs, decentralised clinical trials (DCT), and the incorporation of real-world evidence are increasingly pivotal in addressing these challenges. Furthermore, by leveraging advances in technology such as genomics and biomarker identification, biopharmaceutical developers can create highly targeted therapies, increasing the potential for demonstrable efficacy despite smaller clinical cohorts.
Gaining a thorough understanding of the patient journey for a specific disease can guide the strategic use of DCT approaches, significantly enhancing patient centricity. By closely mapping the patient pathway, researchers can identify specific barriers that patients and their families face, such as frequent travel to distant trial sites, extensive clinic visits, or burdensome reporting procedures, and proactively implement solutions. Digital tools that enable flexible, accessible, and patient-centric clinical trials are particularly vital in the context of rare diseases, where eligible participants are often scattered across wide geographical areas and may face significant mobility or health-related limitations.
Through secure telemedicine platforms, participants can attend virtual appointments, access healthcare professionals, and receive guidance without the burden of long-distance travel. This is complemented using mobile health applications and wearable remote monitoring devices that support seamless, real-time reporting of symptoms and quality-of-life measures. These apps are designed to integrate easily into daily life, making participation less disruptive and more intuitive, and wearable devices reduce the clinical burden by passively collecting physiological data such as heart rate, oxygen saturation, or activity levels with clinical-grade accuracy.
Together, these decentralised strategies not only reduce logistical barriers but also improve trial adherence, accelerate enrollment timelines, and enhance the diversity of participants. By shifting the center of trial activity closer to the patient, DCTs fundamentally reframe the clinical trial experience, making it more inclusive, efficient, and responsive to the needs of those living with rare diseases.
The role of clinical research organizations
As orphan drug development becomes more complex and decentralized methodologies grow in importance, Clinical Research Organizations (CROs) have become vital partners in bringing rare disease therapies to market, offering expertise that allows biopharmaceutical sponsors to navigate the evolving clinical and regulatory landscape with greater agility and precision.
It is important for biopharma sponsor developing rare disease therapies to partner with a CRO that brings an integrated approach to managing trials, backed by extensive therapeutic expertise and a commitment to patient-focused innovation. Your chosen CRO needs to be able to support sponsors across the full clinical development lifecycle, from study design and site activation through to regulatory submission and post-approval surveillance. They also need a global footprint that reaches dispersed and often hard-to-identify patient populations, a critical factor in rare disease research. Along with these tangible requirements, sponsors should look for a CRO that is able to adapt with the changing needs of a rare disease study. The need for flexibility in these trials is not a matter of “if”, but it is a matter of “when”.
By leveraging flexibility, digital tools, data-driven insights, and decentralized capabilities, the right CRO can enhance trial efficiency and ensures a more seamless experience for both participants and sponsors. Their involvement not only reduces operational burdens – it can also enable more inclusive, flexible, and timely trial execution, which are key priorities when dealing with small and vulnerable patient demographics.
Looking ahead, overcoming the challenges inherent in orphan drug development requires a multifaceted and personalized approach. Regulatory bodies must continue refining incentive structures to maintain a conducive environment for innovation, while biopharmaceutical companies and CROs must harness technological advancements and innovative trial methodologies to demonstrate drug efficacy effectively.
To find out more about how Caidya supports biopharmaceutical companies to overcome challenges in rare disease clinical trials, download the whitepaper on this page.
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