On January 10, 2024, Pharmaceutical Technology interviewed Jeremiah Kelly about the monetary consequences of the FDA’s priority review vouchers (PRVs). According to the article, PRVs provide a crucial regulatory framework that stimulates small biotech research and development activity.
Since the market spike in 2015, less than a dozen vouchers have been sold each year. “[Small biotechs] have a different perspective than a lot of outside observers,” Kelly said. “The height of the market was obviously $350m for a voucher. But for many companies, $90-100m is still an incredibly large incentive.”
He also told Pharmaceutical Technology that the current financial climate in a number of sectors could cause PRVs to go for lower fees in the future. Kelly explained, “I think some of the smaller companies could become more desperate for the funds. If venture capital doesn’t rebound, we’ll see a depressed value.”
Kelly also contextualized the emerging business models he has observed: “By obtaining a voucher and then taking the proceeds [from a sale] to invest in new adaptable technologies, you can create a self-sustaining R&D pipeline.”
Pharmaceutical Technology reports that despite stabilizing, the market and PRV programs will continue to fluctuate based on political decisions.
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