ASGCT Joins With More Than 200 Groups in Support of Orphan Drug Tax Credit

ASGCT Staff - November 08, 2017

Credit: Architect of the Capitol/Public Domain

As part of proposed tax reform, the Trump administration and the United States House of Representatives has proposed eliminating the Orphan Drug Tax Credit (ODTC).

The ODTC allows drug manufacturers to claim a tax credit of 50 percent of the qualified costs of clinical research and drug testing of orphan drugs. An economic analysis of the ODTC done by the National Organization for Rare Disorders (NORD) found that without the ODTC approximately 33 percent fewer orphan therapies would have been developed over the previous 32 years, and 33 percent fewer orphan therapies will be developed going forward if the tax credit is repealed, which would be a critical blow to individuals with rare diseases.

In response to the release of the Tax Cuts and Jobs Act, ASGCT signed onto an advocacy letter alongside approximately 140 other organizations. The letter, addressed to leaders of both the U.S. Senate’s Committee on Finance and the U.S. House Committee on Ways & Means, has attracted and additional 60 groups in the week since ASGCT joined. All told, more than 200 organizations have signed onto the letter.

As a society, ASGCT strongly opposes stifling the development of innovative and curative treatments of all kinds, including gene and cell therapy. We hope our members and interested parties will consider joining us in speaking up in favor of this important incentive. To help make reaching out to your local representatives easier, NORD offers tools with which you can directly call or email your Senators and Representatives.

NORD recommends the following language for use on social media, but feel free to adapt and include @ASGCTherapy in your post:

"I stand w/ @RareDiseases & 200 other #raredisease advocacy organizations in support of the #OrphanDrug Tax Credit! Please don't repeal it! 30M Americans w/ #rarediseases, including me, rely on it."

A current version of the letter, including all participating organizations and the full text of the letter, can be found on the NORD website.

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