Frost & Sullivan insight
Rare diseases refer to those with extremely low incidence rates and a very small total number of patients. Currently, China's two versions of the rare disease catalog include 207 rare diseases, while public data shows that more than 7,000 rare diseases have been identified worldwide, but only 5% have clear treatment plans. It is said that drug development for rare diseases is difficult, and there has always been a saying in the industry of "double ten." What are the special aspects of the "difficulty" in drug development for rare diseases compared to other drugs? In recent years, policies surrounding rare diseases have been continuously introduced, covering multiple aspects from research and development to commercialization. What characteristics are shown by policy-making in accelerating the development of rare disease drugs? What might be the future direction? Can currently popular AI help with the development of rare disease drugs? What other tools are expected to accelerate the development of rare disease drugs?
Wang Peng, Senior Consulting Manager at Frost & Sullivan (hereinafter referred to as "Frost & Sullivan") in Greater China, was interviewed by The Paper to discuss the challenges and opportunities of drug development for rare diseases.
Q:It is said that drug development for rare diseases is difficult, and there has always been a saying in the industry of "double ten." What are the special aspects of the "difficulty" in drug development for rare diseases compared to other drugs?
Wang Peng
Senior Consulting Manager at Frost & Sullivan in Greater China
In terms of clinical research:
Difficulty in target discovery: 80% of rare diseases are genetic disorders, with relatively weak basic research. Many diseases lack mature animal models and research data, and the pathogenesis is complex and heterogeneous, making target discovery and validation extremely costly. Although new technologies such as gene sequencing and AI-assisted analysis have made breakthroughs, their application is still in its initial stages and has not been widely popularized.
Difficulty in data acquisition: The number of rare disease patients worldwide is small, and the diagnostic rate is low, making it difficult to meet the demand for trial samples. Clinical trials often face delays or target adjustments due to insufficient patient recruitment. In contrast, the number of trial samples for common disease drugs is large, allowing for rapid research and development.
In terms of the market:
The investment in drug development for rare diseases is unbalanced with commercial returns. Due to the small market size and limited patient affordability, it is difficult to recover research costs, and companies face the dilemma of "high investment, low return." Although policies provide market exclusivity periods and tax incentives, only a few drugs can break even, and capital tends to invest in common disease areas.
Overall, drug development for rare diseases faces multi-dimensional systematic challenges. Through national special funds and dynamic medical insurance negotiations, research costs can be reduced, payment guarantees can be improved, and cross-border cooperation and data sharing can be promoted, thereby driving innovation and benefiting rare disease patients.
Q:In recent years, policies surrounding rare diseases have been continuously introduced, covering multiple aspects from research and development to commercialization. What characteristics are shown by policy-making in accelerating the development of rare disease drugs? What might be the future direction?
Wang Peng
Senior Consulting Manager at Frost & Sullivan in Greater China
In recent years, global policies for rare disease drug development have shown systematic, differentiated, and multi-dimensional support, balancing corporate research and development incentives with patient accessibility and promoting the development of this special field.
Before drugs are launched on the market, governments around the world introduce policies to accelerate review and approval: countries generally shorten the market launch cycle for rare disease drugs through "green channels." The EU allows accelerated approval based on small sample clinical trial data. The National Medical Products Administration (NMPA) of China has shortened the review time limit for new rare disease drugs to one-third that of ordinary drugs; after launch, market incentives and risk compensation mechanisms are widely applied, such as countries generally extending the market exclusivity period for orphan drugs.
At the same time, countries provide research incentives and industry chain collaboration: tax exemptions, special funds, and industry-university-research cooperation have become key means. The United States provides federal research grants, the EU sets up special research funds, and local governments (such as Beijing and Shanghai) in China establish rare disease research centers and provide clinical trial bases.
To solve data difficulties, a collaborative network for research and development is accelerating construction: for example, the EU has established 24 rare disease reference networks to integrate medical resources from various countries. The National Medical Products Administration of China has launched a pilot project for real-world data application, supporting cross-border clinical trial data mutual recognition and improving research and development efficiency; the payment system is also continuously innovating.
Looking ahead, the approval process is expected to be further optimized, and international regulatory agencies (such as FDA, EMA, NMPA, etc.) are expected to further coordinate the review standards for rare disease drugs, reduce repetitive studies, and accelerate global simultaneous launch; the transformation of data assetization is expected to promote the formation of cross-border data alliances, using blockchain technology to share data and reduce clinical trial costs. Policy innovation is reconstructing the economic model of rare disease drug development, aiming to achieve patient accessibility, sustainable corporate operations, and affordable medical insurance in the future, providing institutional guarantees for overcoming rare diseases.
Q:Can currently popular AI help with the development of rare disease drugs? What other tools are expected to accelerate the development of rare disease drugs?
Wang Peng
Senior Consulting Manager at Frost & Sullivan in Greater China
Firstly, AI can quickly analyze large amounts of compounds, predict their interactions with targets, and accelerate drug screening. Secondly, through deep learning, AI optimizes the molecular structure of drugs, improving efficacy and reducing side effects. Moreover, AI analyzes genomic and proteomic data to help discover new drug targets and biomarkers. In addition, AI simulates clinical trials, predicts drug effects and safety, and reduces failure risks. These applications not only improve research and development efficiency but also enhance the safety and effectiveness of drugs.
In addition to accelerating drug development, AI can also analyze clinical symptoms, imaging, and genomic data through data processing and pattern recognition, identify disease information, and reduce misdiagnosis and missed diagnoses. In personalized treatment, AI analyzes individual data, recommends targeted drugs, predicts treatment responses, and dynamically adjusts plans. Moreover, AI helps with rare disease management, including data management, remote monitoring, and patient education. In summary, AI multi-dimensionally improves the precision of medical services, improving diagnosis and treatment effects and patients' quality of life. With technological development, the potential of AI will be further unleashed, bringing hope to more rare disease patients.
*This interview has been published in The Paper, with reporter Li Xiaoxiao, and the original title was: 'International Rare Disease Day | Only 5% Rare Diseases Have Clear Treatment Plans, How Can Drug Development Break Through?'


