Contribute Try STAT+ Today

WASHINGTON — Drug makers mounted a last-minute, and so far unsuccessful, campaign to kill a surprise provision in House Democrats’ massive spending package that will substantially curtail tax breaks meant to fuel rare disease research, according to an internal industry email obtained by STAT.

The provision, which Democrats included in the spending package on Monday, cracks down on the so-called orphan drug tax credit. Currently, drug makers are allowed to write off 25% of their clinical trial costs for drugs treating so-called orphan conditions, which affect fewer than 200,000 people. Under the provision introduced by Democrats, drug makers could not collect the credit if the drug had previously been approved by the Food and Drug Administration for a separate indication.

Unlock this article by subscribing to STAT+ and enjoy your first 30 days free!

GET STARTED

What is it?

STAT+ is STAT's premium subscription service for in-depth biotech, pharma, policy, and life science coverage and analysis. Our award-winning team covers news on Wall Street, policy developments in Washington, early science breakthroughs and clinical trial results, and health care disruption in Silicon Valley and beyond.

What's included?

  • Daily reporting and analysis
  • The most comprehensive industry coverage from a powerhouse team of reporters
  • Subscriber-only newsletters
  • Daily newsletters to brief you on the most important industry news of the day
  • STAT+ Conversations
  • Weekly opportunities to engage with our reporters and leading industry experts in live video conversations
  • Exclusive industry events
  • Premium access to subscriber-only networking events around the country
  • The best reporters in the industry
  • The most trusted and well-connected newsroom in the health care industry
  • And much more
  • Exclusive interviews with industry leaders, profiles, and premium tools, like our CRISPR Trackr.

Create a display name to comment

This name will appear with your comment