Power Your Efforts to Develop Treatments for Rare Diseases
Pharmaceutical companies face significant financial challenges when developing treatments for rare diseases, often called “orphan diseases”. With limited patient populations, these endeavors can seem economically unviable. The Orphan Drug Tax Credit (ODC) addresses this by offering a substantial tax incentive to encourage investment in life-saving treatments.
Key Benefits of the Orphan Drug Credit
Significant Tax Savings
The ODC allows you to claim up to 25% of qualified clinical testing expenses, making it easier to invest in orphan drug development.
Comprehensive Coverage
The ODC covers 100% of qualified contract research expenses and includes foreign clinical testing expenses under certain conditions.
Dual Tax Credit Opportunities
Your company can claim R&D and ODC credits in the same tax year (provided you meet the criteria for each), maximizing financial support for diverse medical research.
Extended Support Timeline
You can claim the ODC for expenses from the Federal Drug Administration’s (FDAs) orphan drug designation date to the drug’s approval date, ensuring extended financial support.
Our Perspective, Your Benefit
R&E Capitalization is Still Here — What Should You Do if Change Isn’t Coming?
Build Back Better Act (BBBA)
Getting Ahead of Tax Credit and Incentive IRS Issues
Due Diligence
Leaders ready to serve you
As you grow, you face complex risks and opportunities. Benefit from hands-on guidance focused on delivering top-to-bottom value for you and your organization.
Danielle Bradley, MBA
National Biotech & Lifesciences Industry Co-Leader
Michael Silvio, CPA
Tax Partner
Related Solutions
R&D Tax Credits
Power innovation by reducing tax liability through state and federal R&D credits.
Tax Credits and Incentives
Put your profits back where they belong: driving expansion and innovation for your organization. With experienced guidance credits and incentives can be a powerful tool for fueling your growth.
Enterprise Business Tax
Your goal is to drive growth on a large scale. Our goal is to identify strategic opportunities, streamline complexities, and deliver tax solutions that align with your enterprise’s needs.