Bush Vetoes Legislation on ‘Orphan Drugs’

President Bush today vetoed legislation designed to boost wider development of so-called “orphan drugs” that treat rare diseases and dilute monopoly opportunities for drug firms.

Bush said in a statement that he had “serious concerns” that the measure actually would remove incentives for drug companies to develop new treatments, having the opposite effect of its purpose.

The legislation would amend the 1983 Orphan Drug Act that gives drug companies incentives to develop and manufacture medications generally used against diseases affecting fewer than 200,000 people.

The amendments would water down the exclusive marketing rights that the Orphan Drug Act gave the drug producers. The law now gives manufacturers a seven-year exclusivity benefit.

The White House contends that taking away that benefit actually would decrease the willingness of firms to develop orphan drugs, because of the expense involved in the research and development.

But supporters of the vetoed legislation contend that some drug manufactureres have misused its provisions, particularly in regard to drugs used to treat AIDS and associated infections. They say drug firms have used the law to keep drug costs artificially high.