Gilead Sciences, Inc. (GILD) has entered into an agreement to purchase neglected tropical disease priority review voucher from Canada based Knight Therapeutics Inc. On completion of the transaction, Gilead will pay $125 million to Knight Therapeutics.
Knight Therapeutics was awarded the voucher under an FDA program to encourage the development of new drugs and vaccines for neglected tropical diseases following approval of Impavido in March this year. The FDA has approved Impavido for the treatment of patients with visceral, mucosal and cutaneous leishmaniasis.
How Does Priority Review Voucher Benefit the Holder?
A priority review voucher will entitle Gilead to a priority review for a candidate of its choice. A priority review would shorten the review period of the candidate from the standard ten months to six months.
Earlier this year, Regeneron Pharmaceuticals, Inc. (REGN) purchased a rare pediatric disease priority review voucher from BioMarin Pharmaceutical Inc. (BMRN). Regeneron had paid $67.5 million for the priority review voucher. Sanofi (SNY) and Regeneron are jointly developing alirocumab, a PCSK9 antibody for the treatment of patients suffering from hypercholesterolemia. Sanofi and Regeneron intend to submit regulatory filings for the candidate in the U.S. and EU by year end and plan to use the priority review voucher for the same, which should expedite the review process of the drug.
Gilead currently carries a Zacks Rank #3 (Hold). A better-ranked stock in the health care sector is BioMarin, carrying a Zacks Rank #2 (Buy).
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