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Will competition drive down costs of rare disease medicines?

By Peter Winter

Monday, March 24, 2014

Rare disease therapies are by their nature expensive. Companies that attach high price tags to their approved medicines argue that they need to recoup their research and development investment costs with an economic model that takes into account the very small patient populations for which their drugs are targeted. The absence of competition within the small market segment also allows the drug developer plenty of room to establish annual treatment costs. However, could a competitive environment affect that model?

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