Parthenon Research
Long/short equity, growth at reasonable price, special situations, value

Aegerion And The Orphan Drug Paradox

Once Scorned, Orphan Diseases Have Become Popular

Companies developing drugs for Orphan Disease have emerged as a specialty group within the Biotechnology industry. These companies are using provisions of the 1984 Orphan Drug Legislation that provide FDA assistance, financial and tax incentives, and favorable reimbursement. During the first 15 years after the legislation, Orphan Drug approvals increased attention to rare diseases and led to a few successful product introductions. There have been some outstanding successes, leading more companies to focus on orphan drugs. However, we believe this overlooks the difficulties involved in rare diseases.

The business model for an Orphan Drug company was largely pioneered by Genzyme in 1990s, which demonstrated that rare diseases could lead to profitable products. At...

Join Seeking Alpha PRO to read this archived article and 11,574 other archived articles
FREESA PRO MEMBERS
IDEA GENERATORXExclusive access to 10 PRO ideas every day
INVESTING IDEAS LIBRARYXExclusive access to PRO library of more than 15,000 ideas
SECTOR EXPERT NETWORKXExclusive access to all sector experts for direct consultation
PERFORMANCE TRACKINGXTrack performance of all PRO stock ideas
PROFESSIONAL TOOLSXProfessional Idea Filters to zero-in based on industry, market cap and more
"In just the first month of using PRO, I used it to generate two ideas which were actionable for me. As a result of these two positions, I have earned more than 20 times the annual subscription costs for PRO."Michael Yagemann, Greenbridge Capital
"I am pleasantly surprised with the scope of small and mid-cap coverage PRO offers. You can't find that any where else."Patrick Rice, Mainstay Capital Management
You may cancel at any time for any reason, and receive a prompt refund for membership on months paid and not used (max. 6 months). Details