how could the government encourage companies to commercializ

how could the government encourage companies to commercialize orphan drugs that treat or cure rare conditions but are not economically desirable? if you were a member of congress, would you support government intervention in this situation?

Solution

Government should subsidize such orphan drugs that are important for curing rare diseases and conditions but are not economically desirable or viable. A compnay will not want to engage in activities which does not make economic sense i.e are unprofitable. So if a medicine will cause losses to a company, it may not want to make it despite its usefulness.

Government can tackle this situation by offering subsidies and tax holidays to companies. Subsidy means that the government will share a part of the cost so that the company does not make losses in selling the medicine. Alternatively the government can provide tax holidays to make the venture viable.

If a was a member of the Congress i would definately support government intervention. This action will benefit many orphans. The research and knowledge and technology gone into making the drug should not be allowed to go waste and must be harnessed for the benefit of the society.