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Pediatric tax incentive

Executive Summary

"A tax credit cannot provide the necessary incentives for pediatric research," Lilly VP-Clinical Research & Regulatory Affairs Timothy Franson, MD, writes in a June 12 letter responding to Rep. Pallone (D-N.J.) (1"The Pink Sheet" May 7, p. 5). "A tax credit, while it might allow companies to recoup some of the cost of clinical trials, provides no support for projected returns or for developing an infrastructure for sustained pediatric research." Franson adds that marketing exclusivity provides a far greater incentive than the tax credit under the Orphan Drug Act

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