What differentiates an orphan drug from a blockbuster drug?

The distinction between orphan drugs and blockbuster drugs primarily revolves around the patient populations they target. Orphan drugs are specifically developed to treat rare medical conditions, often referred to as orphan diseases. These conditions affect a small percentage of the population, making the development of treatments less financially appealing for pharmaceutical companies without certain incentives, such as tax breaks and market exclusivity.

On the other hand, blockbuster drugs are characterized by their ability to generate significant sales, typically achieving over $1 billion in annual revenue. These drugs target more common health conditions and have broad market use, leading to high sales volumes.

Thus, the defining feature of orphan drugs lies in their application for rare diseases, distinguishing them fundamentally from blockbuster drugs that cater to a larger patient base and aim for high profitability.