Washington, DC—California Life Sciences (CLS) is calling on the California Congressional Delegation to support the Orphan Drug Tax Credit (ODTC).

CLS has expressed strong concern with Section 138141 of the Build Back Better Act, which would amend the Orphan Drug Tax Credit (ODTC) in ways that severely undermine the intent of the 1983 Orphan Drug Act and jeopardize new research into rare diseases.

A repeal of the ODTC would have a disproportionately negative impact in California. Our state’s 1,805 biopharmaceutical companies employ tens of thousands of people, with total life sciences jobs exceeding 323,000 Californians, consistently ranking the state #1 in the country.

Section 138141 would dramatically reduce the existing and intended incentive for all but the first approved orphan use of a new drug, thereby significantly curtailing the power of the ODTC.

Taking into consideration other possible reforms included in the Build Back Better Act, the Orphan Drug Tax Credit is needed now more than ever so that it can continue to spur and support the riskiest biomedical innovation into life-saving treatments and cures for patients that desperately need them.

CLS joined the National Rare Organization for Disease (NORD) and 86 other organizations in asking for the removal of provisions related to the Orphan Drug Tax Credit in the House version of the Build Back Better Act.

California Life Sciences (CLS) is the state’s most influential and impactful life sciences membership organization, advocating for the sector and its diverse innovation pipeline. For more than 30 years, CLS has served the community by supporting companies of all sizes, from early-stage innovators and startups to established industry leaders in the fields of biotechnology, pharmaceuticals, and medical technology. With offices in South San Francisco, San Diego, Sacramento, Los Angeles, and Washington DC, CLS works to shape public policy, improve access to breakthrough technologies, educate lawmakers, and advance equity within our ecosystem by championing innovative solutions for some of the most pressing challenges of our times. In doing so, CLS fulfills its mission to protect and nurture California’s life sciences industry, empowering discoveries that lead to healthier lives around the world. #WeAreCaliforniaLifeSciences