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Journal of General Internal Medicine logoLink to Journal of General Internal Medicine
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. 2024 Feb 7;39(7):1276–1279. doi: 10.1007/s11606-024-08651-8

Therapeutic Value of Orphan Drugs Approved by Health Canada: A Cross-Sectional Study

Joel Lexchin 1,2,
PMCID: PMC11116316  PMID: 38326584

INTRODUCTION

In annual reports, Health Canada identifies orphan drugs approved by either the Food and Drug Administration or the European Medicines Agency.1

According to the definition used by the Canadian Patented Medicine Prices Review Board (PMPRB), there are 125 expensive drugs for orphan diseases in Canada accounting for 12.2% of all drug expenditures.2 To help provinces cope with funding orphan drugs, in March 2023, the federal government announced a three-year C$1.4 billion cost-sharing program.

To help determine how this investment should be allocated, this study investigates therapeutic benefits from orphan and non-orphan drugs for oncology and all non-oncology indications. It also compares the drug and clinical trial characteristics and review type of orphan and non-orphan drugs.

METHODS

Data Availability

The methods used in gathering data and a description of the types of regulatory reviews used were previously described by Lexchin who looked at drugs approved from September 1, 2012, to March 31, 2022.3

Therapeutic Benefit

Increase in therapeutic benefit was categorized as major, moderate, little to none based on rankings from the PMPRB, the French bulletin Prescrire International and the German Institute for Quality and Efficiency in Health Care that take into account the balance of benefits and harms.4 If a drug was evaluated by more than one organization, the highest ranking was used. The search for therapeutic evaluations was done from October 15–20, 2023.

Data Analysis

Characteristics of orphan and non-orphan drugs, their clinical trials, and review types were compared for oncology indications and non-oncology indications using a Mann-Whitney test as the data was not normally distributed. Review types and therapeutic benefits were compared using either a chi-square or Fisher exact test. A p value of < 0.05 was considered significant. Statistical calculations were done using Prism 10.1.0 (GraphPad Software LLC).

RESULTS

Health Canada approved a total of 296 new drugs of which 94 were orphans. Eighty-eight (29.7%) were for oncology indications (67 orphan and 21 non-orphan) and 208 (70.3%) for non-oncology indications (73 orphan and 135 non-orphan).

Drugs for Oncology Indications

Table 1 summarizes the data for orphan and non-orphan drugs. There were no differences in drug characteristics. The only differences in clinical trial characteristics were in the number of patients enrolled and in the trial outcome, with orphan drugs using surrogate outcomes more often (p < 0.0001, chi-square test). The distribution of therapeutic benefits was almost identical between the two groups of drugs (p = 0.9656, chi-square test) (Table 1). Therapeutic evaluations were not available for 7 (10.4%) orphan and 1 (4.8%) non-orphan drugs.

Table 1.

Comparison of Characteristics and Review Types of Orphan and Non-Orphan Drugs for Oncology Indications

Orphan oncology drugs Non-orphan oncology drugs p value
Total number 67 21
Drug characteristics
  Indications per drug
    Number (median, IQR) 1 (1,1) 1 (1,1) 0.4139, Mann-Whitney test
  First in class
    Yes (%) 23 (34.3) 7 (31.8) 0.8625, chi-square test
    No (%) 44 (65.7) 14 (68.2)
  Type of drug
    Small molecule (%) 47 (70.1) 11 (50.0) 0.2161, chi-square test
    Biologic (%) 20 (29.9) 10 (50.0)
Clinical trial characteristics
  Pivotal trials
    Number per drug, median (IQR) 1 (1,1) 1 (1,1) 0.3809, Mann-Whitney test
  Pivotal trial phase used for approval
    1 (%) 4 (6.0) 3 (14.3) 0.3513, Fisher exact test
    2 (%) 33 (49.3) 7 (33.3)
    3 (%) 28 (41.8) 10 (47.6)
    No information (%) 2 (3.0) 1 (4.8)
Number of arms per trial
    1 (%) 25 (37.3) 6 (28.6) 0.3989, Fisher exact test
    2 (%) 35 (52.2) 11 (52.4)
    3 (%) 4 (6.0) 1 (4.8)
    4+ (%) 2 (3.0) 1 (4.8)
    No information (%) 1 (1.5) 2 (9.5)
  Patients enrolled per trial
    Median (IQR) 189 (110, 392) 429 (184, 734) 0.0165, Mann-Whitney test
  Outcome used
    Clinical (%) 11 (16.4) 17 (81.0) < 0.0001, chi-square test
    Surrogate (%) 56 (83.6) 4 (19.0)
  Randomized
    Yes (%) 37 (55.2) 13 (61.9) 0.8483, Fisher exact test
    No (%) 29 (43.3) 8 (38.1)
    No information (%) 1 (14.9) 0 (0)
  Control
    Placebo (%) 13 (19.4) 5 (23.8) 0.9355, Fisher exact test
    Active (%) 16 (23.9) 4 (19.0)
    No (%) 29 (43.3) 10 (47.6)
    Other (%) 9 (13.4) 2 (9.5)
  Blinded
    Yes (%) 13 (19.4) 7 (33.3) 0.2890, Fisher exact test
    No (%) 50 (74.6) 14 (66.7)
    No information (%) 4 (6.0) 0 (0)
Review type
  Type of review
    Standard (300 days) 24 (35.8) 7 (33.3) 0.8437, chi-square test
    Priority (180 days) 15 (22.4) 6 (28.6)
    Notice of compliance with conditions/priority + notice of compliance with conditions (conditional approval subject to results of confirmatory studies) 28 (41.8) 8 (38.1)
Therapeutic value
  Major (%) 13 (21.7) 4 (18.2) p = 0.9656, chi-square test
  Moderate (%) 16 (26.7) 5 (22.7)
  Little to none (%) 31 (41.7) 11 (50.0)

Drugs for Non-Oncology Indications

There were statistically significant differences in many areas between orphan and non-orphan drugs (Table 2). However, there was no difference in the distribution of therapeutic benefits between the two types of drugs (p = 0.0821, chi-square test) (Table 2). Therapeutic evaluations were not available for 19 (26.0%) orphan and 22 (16.3%) non-orphan drugs.

Table 2.

Comparison of Characteristics and Review Types of Orphan and Non-Orphan Drugs for Non-Oncology Indications

Characteristic Orphan non-oncology drugs Non-orphan non-oncology drugs p value
Total number 73 135
Drug characteristics
  Indications per drug
    Number (median, IQR) 1 (1,2) 2 (2,3) < 0.0001, Mann-Whitney test
  First in class
    Yes (%) 37 (50.7) 38 (28.1) 0.0006, chi-square test
    No (%) 29 (39.7) 91 (67.4)
    No information (%) 7 (9.6) 6 (4.4)
  Type of drug
    Small molecule (%) 45 (61.6) 102 (75.6) 0.0519, chi-square test
    Biologic (%) 28 (38.4) 33 (24.4)
Clinical trial characteristics
  Pivotal trials
    Number per drug, median (IQR) 1 (1,1) 1 (1,1) 0.7957, Mann-Whitney test
  Pivotal trial phase used for approval
    1 (%) 0 (0) 2 (1.5) 0.4285, chi-square test
    2 (%) 6 (8.2) 6 (4.4)
    3 (%) 58 (79.5) 105 (77.8)
  No information (%) 9 (12.3) 22 (16.3)
  Number of arms per trial
    1 (%) 0 (0) 7 (5.2) 0.077, chi-square test
    2 (%) 6 (8.2) 74 (54.8)
    3 (%) 58 (79.5) 29 (21.5)
    4+ (%) 9 (12.3) 11 (8.1)
    No information (%) 0 (0) 14 (10.4)
  Patients enrolled per trial
    Median (IQR) 137 (52, 260) 870 (590, 1605) < 0.0001, Mann-Whitney test
  Outcome used
    Clinical (%) 35 (47.9) 46 (34.1) < 0.0291, Fisher exact test
    Surrogate (%) 37 (50.7) 89 (65.9)
    No information (%) 1 (1.4) 0 (0)
  Randomized
    Yes (%) 60 (82.2) 124 (91.9) 0.0111, Fisher exact test
    No (%) 12 (16.4) 6 (4.4)
    No information (%) 1 (1.4) 5 (3.7)
  Control
    Placebo (%) 40 (54.8) 88 (65.2) 0.0145, chi-square test
    Active (%) 12 (16.4) 33 (24.4)
    No (%) 15 (20.5) 10 (7.4)
    Other (%) 3 (4.1) 3 (2.2)
    No information (%) 3 (4.1) 1 (0.7)
  Blinded
    Yes (%) 43 (58.9) 109 (80.7) < 0.0001, chi-square test
    No (%) 24 (32.9) 12 (8.9)
    No information (%) 6 (8.2) 14 (10.4)
Review type
  Type of review
    Standard (300 days) 29 (39.7) 115 (85.2) < 0.0001, chi-square test
    Priority (180 days) 41 (56.2) 17 (12.6)
    Notice of compliance with conditions/priority + notice of compliance with conditions (conditional approval subject to results of confirmatory studies) 3 (4.1) 3 (2.2)
Therapeutic value
  Major (%) 12 (22.2) 11 (9.7) p = 0.0821, chi-square test
  Moderate (%) 11 (20.4) 23 (20.4)
  Little to none (%) 31 (57.4) 79 (69.9)

DISCUSSION

Orphan and non-orphan drugs for oncology indications were quite similar in most drug and clinical trial characteristics including in the distribution of therapeutic benefits with only 21.7% orphan drugs and 18.2% non-orphan drugs showing major therapeutic gains. The reliance on surrogate outcomes 5,6 and the smaller trial size7 may have influenced the number of orphan drugs showing major therapeutic gains.

The failure to show any difference in therapeutic benefits between orphan and non-orphan drugs for non-oncology indications may have been due to the lack of therapeutic evaluations for almost a fifth of drugs. Additionally, orphan drugs may offer major therapeutic benefits for subsets of non-orphan indications.

Limitations

The three organizations analyze drugs early in their lifecycle, and therefore their ratings may not reflect therapeutic benefits as drugs become more mature.

Conclusion

Orphan drugs are likely to be no more therapeutically beneficial than non-orphan drugs, especially for oncology indications. This finding means that it is imperative for the federal government to develop clear criteria about how its funding will be allocated. To this end, when orphan drugs enter the market without high-quality evidence of additional therapeutic benefit, funding should be conditional on risk sharing agreements with manufacturers and further evidence generation should be undertaken with the understanding that funding will be withdrawn if the evidence is not convincing.

Declarations:

Conflict of Interest:

In 2020–2023, Joel Lexchin received payments for writing a brief on the role of promotion in generating prescriptions for Koski Minsky and from Strategy Institute for being on a panel discussing pharmacare. He is a member of the Board of Canadian Doctors for Medicare. He receives royalties from University of Toronto Press and James Lorimer & Co. Ltd. for books he has written. He is participating in projects funded by the Canadian Institutes of Health Research.

Footnotes

Publisher's Note

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References

Associated Data

This section collects any data citations, data availability statements, or supplementary materials included in this article.

Data Availability Statement

The methods used in gathering data and a description of the types of regulatory reviews used were previously described by Lexchin who looked at drugs approved from September 1, 2012, to March 31, 2022.3


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