Zevra Therapeutics announces a $150 million sale of its Rare Pediatric Disease Priority Review Voucher to enhance its capital.
Quiver AI Summary
Zevra Therapeutics, Inc. has announced the sale of its Rare Pediatric Disease Priority Review Voucher (PRV) for $150 million, with the transaction expected to close in 30 to 45 days, pending customary conditions. This non-dilutive capital will enhance Zevra's financial position and support its strategic priorities, including the commercial launches of its therapies MIPLYFFA™ and OLPRUVA®, as well as ongoing product development for rare diseases. The PRV was awarded following the FDA's approval of MIPLYFFA for treating neurological symptoms of Niemann-Pick disease type C. Cantor Fitzgerald and Latham & Watkins are advising Zevra on this transaction.
Potential Positives
- Zevra Therapeutics has successfully entered into a definitive asset purchase agreement to sell its Rare Pediatric Disease Priority Review Voucher for $150 million, providing significant non-dilutive capital.
- The funds from the PRV sale will support Zevra's strategic priorities, including the commercial launches of MIPLYFFA™ and OLPRUVA®.
- This transaction enhances the company's balance sheet and positions Zevra for continued investment in its product pipeline, addressing unmet needs in the rare disease community.
Potential Negatives
- The sale of the Rare Pediatric Disease Priority Review Voucher (PRV) may indicate a lack of confidence in the company's own product pipeline, suggesting that they are relying on external financial instruments rather than organic growth from their therapies.
- The transaction's completion is subject to customary closing conditions, which introduces uncertainty and could delay access to the expected $150 million in capital.
- The company acknowledges several risks and uncertainties in their forward-looking statements, suggesting potential challenges in achieving their strategic goals and the success of their products.
FAQ
What is the primary purpose of Zevra Therapeutics' recent transaction?
Zevra Therapeutics is selling its Rare Pediatric Disease Priority Review Voucher for $150 million to strengthen its financial position.
What financial impact will the sale of the PRV have?
The sale will provide Zevra with non-dilutive capital to support strategic investments and product launches.
What therapy is associated with the PRV Zevra is selling?
The PRV was granted following the FDA approval of MIPLYFFA, a treatment for Niemann-Pick disease type C.
How long until the transaction is expected to close?
The transaction is expected to close within 30 to 45 days, subject to customary closing conditions.
Who assisted Zevra in the PRV transaction?
Cantor Fitzgerald acted as Zevra's financial advisor, while Latham & Watkins LLP served as its legal advisor.
Disclaimer: This is an AI-generated summary of a press release distributed by GlobeNewswire. The model used to summarize this release may make mistakes. See the full release here.
$ZVRA Insider Trading Activity
$ZVRA insiders have traded $ZVRA stock on the open market 6 times in the past 6 months. Of those trades, 1 have been purchases and 5 have been sales.
Here’s a breakdown of recent trading of $ZVRA stock by insiders over the last 6 months:
- NEIL F. MCFARLANE (President and CEO) has made 0 purchases and 2 sales selling 91,817 shares for an estimated $727,389.
- R. LADUANE CLIFTON (CFO & Treasurer) sold 11,000 shares for an estimated $86,471
- JOSHUA SCHAFER (CCO & EVP, Bus. Development) sold 10,500 shares for an estimated $82,526
- TIMOTHY J. SANGIOVANNI (SVP, Finance & Corp Controller) sold 3,000 shares for an estimated $23,587
- COREY MICHAEL WATTON purchased 500 shares for an estimated $3,957
To track insider transactions, check out Quiver Quantitative's insider trading dashboard.
$ZVRA Hedge Fund Activity
We have seen 60 institutional investors add shares of $ZVRA stock to their portfolio, and 48 decrease their positions in their most recent quarter.
Here are some of the largest recent moves:
- ADAGE CAPITAL PARTNERS GP, L.L.C. added 3,001,000 shares (+462.4%) to their portfolio in Q4 2024, for an estimated $25,028,340
- BLACKROCK, INC. added 958,661 shares (+30.7%) to their portfolio in Q4 2024, for an estimated $7,995,232
- AIGH CAPITAL MANAGEMENT LLC added 788,614 shares (+inf%) to their portfolio in Q4 2024, for an estimated $6,577,040
- RUBRIC CAPITAL MANAGEMENT LP added 596,123 shares (+2980.6%) to their portfolio in Q4 2024, for an estimated $4,971,665
- NANTAHALA CAPITAL MANAGEMENT, LLC removed 583,688 shares (-20.0%) from their portfolio in Q4 2024, for an estimated $4,867,957
- ALTIUM CAPITAL MANAGEMENT LP added 537,584 shares (+46.2%) to their portfolio in Q3 2024, for an estimated $3,730,832
- VESTAL POINT CAPITAL, LP removed 525,000 shares (-100.0%) from their portfolio in Q4 2024, for an estimated $4,378,500
To track hedge funds' stock portfolios, check out Quiver Quantitative's institutional holdings dashboard.
Full Release
CELEBRATION, Fla., Feb. 27, 2025 (GLOBE NEWSWIRE) -- Zevra Therapeutics, Inc. (NasdaqGS: ZVRA) (Zevra, or the Company), a commercial-stage company focused on providing therapies for people living with rare disease, today announced that it has entered into a definitive asset purchase agreement to sell its Rare Pediatric Disease Priority Review Voucher (PRV) for gross proceeds of $150 million upon the closing of the transaction, which is expected to take place within 30 to 45 days, subject to customary closing conditions.
LaDuane Clifton, Zevra’s Chief Financial Officer
said, “This non-dilutive capital strengthens our balance sheet by adding gross cash proceeds of $150 million, supporting continued investment in our strategic priorities, which include executing the commercial launches of MIPLYFFA™ and OLPRUVA®, and advancing our pipeline of product candidates to address unmet needs within the rare disease community.”
The PRV was granted to Zevra in September 2024 following approval by the U.S. Food and Drug Administration of MIPLYFFA (arimoclomol), which is indicated for use in combination with miglustat for the treatment of neurological manifestations of Niemann-Pick disease type C (NPC) in adult and pediatric patients 2 years of age and older. The transaction is subject to customary closing conditions, including expiration of the applicable waiting period under the Hart-Scott Rodino Antitrust Improvements Act (HSR). Cantor Fitzgerald acted as Zevra’s exclusive financial advisor and Latham & Watkins LLP acted as Zevra’s legal advisor for this transaction.
About Zevra Therapeutics, Inc.
Zevra Therapeutics, Inc. is a commercial-stage company combining science, data, and patient need to create transformational therapies for rare diseases with limited or no treatment options. Our mission is to bring life-changing therapeutics to people living with rare diseases. With unique, data-driven development and commercialization strategies, the Company is overcoming complex drug development challenges to make new therapies available to the rare disease community.
For more information, please visit
www.zevra.com
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LinkedIn
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Cautionary Note Concerning Forward-Looking Statements
This press release may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include all statements that do not relate solely to historical or current facts, including without limitation statements regarding the potential benefits of any of our products or product candidates for any specific disease or at any dosage; our strategic and product development objectives; the consummation and benefits of the transaction and its impact on the Company’s balance sheet; the outcome of any required filings under the HSR; prescription enrollments; our ability to support patients as they navigate the benefits verification process to obtain either MIPLYFFA™ or OLPRUVA®; availability of and access to MIPLYFFA and OLPRUVA; and the timing of any of the foregoing. Forward-looking statements are based on information currently available to Zevra and its current plans or expectations. They are subject to several known and unknown uncertainties, risks, assumptions, and other important factors that may cause our actual results, performance, or achievements to be materially different from any future results, performance, or achievements expressed or implied by the forward-looking statements. Given these risks and uncertainties, you should not place undue reliance on these forward-looking statements. These and other important factors are described in detail in the "Risk Factors" section of Zevra’s Annual Report on Form 10-K for the year ended December 31, 2023, Zevra’s Quarterly Report on Form 10-Q for the three and nine months ended September 30, 2024, and Zevra’s other filings with the Securities and Exchange Commission]. While we may elect to update such forward-looking statements at some point in the future, except as required by law, we disclaim any obligation to do so, even if subsequent events cause our views to change. Although we believe the expectations reflected in such forward-looking statements are reasonable, we cannot assure that such expectations will prove correct. These forward-looking statements should not be relied upon as representing our views as of any date after the date of this press release.
_____________________________________________
Zevra Contact
Nichol Ochsner
+1 (732) 754-2545
nochsner@zevra.com
Russo Partners Contact
David Schull
+1 (858) 717-2310
david.schull@russopartnersllc.com
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