Ultragenyx Lands $210M Deal To Sell FDA Priority Review Voucher – Retail Sees ‘Huge’ Buying Opportunity

The FDA awarded the voucher after approving Genglycos, a glycogen storage disease type Ia treatment, in August.

• A Priority Review Voucher lets its recipient request a faster review of a future drug application or sell the voucher to another company.
• The company said proceeds will support rare-disease programs and its path toward profitability.
• The latest deal marks Ultragenyx’s third PRV sale, with the previous two in 2018.

Shares of Ultragenyx Pharmaceutical (RARE) were in focus after the biotech company agreed to sell a Rare Pediatric Disease Priority Review Voucher for $210 million, giving it sizeable non-dilutive capital to support its pipeline.

RARE shares were up 4% at the time of writing, bucking the broader market drawdown and on track for their biggest single-day gain so far this month.

Genglycos Is Ultragenyx’s Third PRV Sale

A Priority Review Voucher (PRV) lets its recipient request a faster review of a future drug application with the U.S. Food and Drug Administration (FDA) or sell the voucher to another company.

The FDA awarded the voucher after approving Genglycos, a glycogen storage disease type Ia treatment, in August. Ultragenyx said proceeds from the sale will help fund development of additional rare and ultra-rare disease treatments.

“Monetizing this PRV provides significant non-dilutive capital to advance our efforts to bring forward first-ever therapies for rare and ultra-rare diseases, and supports our path to profitability,” said Howard Horn, Ultragenyx’s CFO.

The latest deal marks Ultragenyx’s third PRV sale, after the company sold its first two vouchers in 2018 for a combined $210.6 million.

RARE Still Has Four Therapies In Pipeline

Ultragenyx’s pipeline includes four experimental therapies for brain, liver and muscle-related diseases. It also markets four drugs — Crysvita, Dojolvi, Evkeeza and Mepsevii — for a range of rare bone, metabolic, cholesterol and genetic disorders.

The latest cash infusion adds to Ultragenyx’s $436 million in cash, cash equivalents and marketable securities as of June 30.

Retail Sees ‘Huge’ Buying Opportunity

Retail sentiment surrounding RARE on Stocktwits remained in the ‘bearish’ zone over the past 24 hours.

One user saw a “huge buying opportunity” with RARE close to a breakout.

View this Stocktwits post

The stock has been under significant selling pressure this year, falling more than 36%.

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