In a noteworthy deal, Gilead Sciences (GILD) agreed to pay $125 million to Sarepta Therapeutics (SRPT) for a priority review voucher. But one Wall Street analyst expressed disappointment over the price tag and suggested the deal raises questions about how much these controversial vouchers can fetch going forward.
Priority review vouchers, you may recall, were created several years ago by the Food and Drug Administration to encourage development of pediatric and tropical disease medicines. These vouchers are valuable to drug makers, because companies can later redeem them when seeking approval from the FDA for another medicine to treat any illness. And the agency is obligated to review the other drug in six months instead of the standard 10 months.