What is the term for medications specifically designed for rare diseases that may not be covered by standard insurance plans?

The term for medications specifically designed for rare diseases is "Orphan Drugs." These medications are referred to as orphan drugs because they are developed to treat conditions that affect a small percentage of the population, often referred to as orphan diseases. Due to the limited market for such treatments, research and development can be less economically viable, which is why government incentives, such as tax breaks and exclusive market rights, are often provided to encourage pharmaceutical companies to invest in these products.

The significance of orphan drugs lies in their ability to address specific medical needs that are frequently overlooked by standard insurance plans and traditional drug development routes. These drugs are crucial for patients with rare diseases who have limited treatment options and may not have access to therapies that are more common.