larger pool of capital for investment. (7) This approach involves two components: (A) Creating large diversified portfolios, called megafunds , consisting of biomedical products at various stages of development. (B) Structuring the financing for these portfolios as combinations of equity and securitized debt. (8) This innovation makes the investment opportunity much more attractive to a large pool of institutional investors that have historically not participated in financing for early-stage therapeutic development. (9) Diversification reduces risk, so that an entity can issue debt and equity, rather than the equity-only investments typically made by venture capital. (10) A series of peer-reviewed simulations conducted by researchers at MIT suggested that a modest megafund model could be successfully implemented for rare diseases (e.g., rare genetic disorders, pediatric cancers, and orphan diseases) with as few as ten to twenty compounds and only $400 million in capital. (11) A rare disease therapeutics fund could serve as a viable pilot project, while minimizing governmental exposure. (12) In addition to appealing to traditional biotech VC investors, megafund investments may be attractive to pension funds, insurance companies, and other large institutional investors, while also potentially lowering drug prices for patients and the healthcare system. (13) The Food and Drug Administration (FDA) may grant the orphan designation for therapies being studied for a rare disease or condition affecting fewer than 200,000 people in the United States, which reduces costs and provides financial incentives to encourage development of such therapies for underserved patient populations. 3. Rare Disease Therapeutics Corporation (a) Establishment (1) In general The Secretary of the Treasury shall organize under the laws of a State a corporation to be known as the Rare Disease Therapeutics Corporation (hereinafter in this Act referred to as the Corporation ). (2) Qualified portfolio manager As soon as practicable after