Updates on the regulatory front are eagerly awaited by investors in the pharma/biotech sector as they impact the share price of the concerned company. Regulatory updates include events like filing of marketing applications, acceptance of these applications for review by the regulatory agencies, reviews by advisory panels and finally, a response from the regulatory agency regarding the approval status. Late last week, Horizon Pharma plc ( HZNP ) announced that the FDA has granted orphan drug status to Actimmune for the treatment of Friedreich's ataxia (FA). According to Horizon Pharma, FA is a degenerative neuro-muscular genetic disorder affecting approximately one in every 50,000 people in the U.S. Under the U.S. Orphan Drug Act, a drug or biological product is granted the special status if it is considered capable of treating a rare disease or condition that affects less than 200,000 patients in the U.S. On receiving orphan drug designation for a candidate, the company developing it is entitled to various incentives, including tax credits for qualified clinical testing. Moreover, the Prescription Drug User Fee Act (PDUFA) fees are waived off the marketing application for an orphan drug designated candidate. Additionally, this status should make Actimmune eligible for seven years of … Continue reading
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