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Investing.com -- Shares of Zevra Therapeutics, Inc. (Nasdaq: ZVRA) climbed 8% following the announcement that the company has entered into an agreement to sell its Rare Pediatric Disease Priority Review Voucher for $150 million. The transaction is anticipated to close within 30 to 45 days, pending customary closing conditions.
The sale of the voucher, which Zevra received in September 2024 following the FDA approval of its drug MIPLYFFA for Niemann-Pick disease type C, is expected to provide the company with a significant infusion of non-dilutive capital. LaDuane Clifton, Zevra’s Chief Financial Officer, commented on the deal, stating, "This non-dilutive capital strengthens our balance sheet by adding gross cash proceeds of $150 million, supporting continued investment in our strategic priorities."
The strategic priorities outlined by Clifton include the commercial launch of MIPLYFFA and OLPRUVA, as well as the advancement of Zevra’s pipeline of product candidates aimed at addressing unmet needs within the rare disease community. Investors appear to have responded positively to the news, as the influx of capital is seen as bolstering the company’s financial position and its ability to invest in growth initiatives.
The Priority Review Voucher system is designed to encourage the development of treatments for rare pediatric diseases. Companies that receive a voucher can use it to expedite the FDA review process for a future product or sell it to another company. Zevra’s decision to sell its PRV reflects a strategic move to capitalize on the asset’s value and strengthen its financial resources.
Zevra’s stock movement today underscores the market’s favorable reaction to the company’s financial strategy as it continues to execute its business plan and deliver therapies to the rare disease community.
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