Regeneron Pharmaceuticals Inc. and Sanofi SA are spending $67.5 million to speed a new cholesterol drug to market.
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"Prior to yesterday's sale, there was a lot of uncertainty about the price that voucher sellers could get in the market. It was important to diminish that uncertainty so investors would feel more comfortable investing in biotech companies that develop drugs for rare and neglected diseases."
"Our hope is that having established a price in the market, more firms will be willing to invest in drugs for rare and neglected diseases. I think the voucher is worth even more than $67 million, but other potential buyers were cautious because the vouchers are so new."
"With the voucher purchase, Regeneron/Sanofi can launch their drug earlier. Patients and payers can benefit from earlier drug access and price competition."
BioDavid Ridley is a professor of the practice at Duke University's Fuqua School of Business and the faculty director of Duke's Health Sector Management Program. Ridley, with Jeff Moe and Henry Grabowski, wrote the 2006 paper that became the Priority Review Voucher law in 2007.
For additional comment, contact Ridley at:david.ridley@duke.eduhttp://www.fuqua.duke.edu/faculty_research/faculty_directory/ridley/