Anavex Life Sciences Corp (AVXL)

[TempePhil]

Orphan Drug Pricing and the SeekingAlpha article pricing

Below is an article excerpt, giving a succinct description of why orphan drugs are priced higher than normal drugs:

EvaluatePharma, a U.S. company that analyzes the pharmaceutical and biotechnology sectors, predicts that orphan-drug sales will grow by 11 per cent a year over the next five years, twice the rate of conventional prescription drugs.

In many ways, that growth reflects the success of orphan-drug laws in the United States, the European Union and Japan. Those laws provide tax breaks, grants, swifter-than-usual approvals, and – crucially – extended market exclusivity to companies that develop life-saving or life-altering treatments for ailments that might affect only a few thousand people around the world.

Such incentives have convinced some drug makers to invest in treatments that used to be unprofitable.

Link to the complete article above.

I strongly suspect the SeekingAlpha Anavex article pulled the Rett pricing from an "EvaluatePharma Orphan Drug Report". Advantageously, Anavex stockholders can find these reports via Mr.Google.

Evaluate is a respected drug industry analysis company, that produces industry reports for the biopharma industry. One of the reports is "EvaluatePharma Orphan Drug Report". The report documents many interesting industry facts. Of interest to us, is the U.S. drug costs per patient, where mean orphan drug price can be found.

GLTAL