Gilead Withdraws Application for Orphan-Drug Status
March 25 2020 - 5:41PM
Dow Jones News
By Tom Burton
Gilead Sciences Inc. withdrew its application to get orphan-drug
status for its investigational coronavirus drug remdesivir, after
public-interest groups and Vermont Sen. Bernie Sanders accused the
company of improperly capitalizing on the national epidemic.
Gilead received the special status just this week from the Food
and Drug Administration. The status would have conferred seven
years of monopoly as well as tax benefits, but the company dropped
the special status after objections were raised.
Orphan-drug status was created by law to apply to rare diseases
affecting fewer than 200,000 people, where drugmakers might not
have a financial incentive to develop medications.
Mr. Sanders, who is running in the Democratic presidential
primary, called the special status "truly outrageous" and had
called on the Trump administration to reverse the special status
for the drug. The public-interest group Public Citizen said that if
the drug proves useful against the new coronavirus, "the world
cannot afford to have one manufacturer maintain a monopoly over
it."
Gilead didn't immediately respond to a request for comment.
Write to Tom Burton at tom.burton@wsj.com
(END) Dow Jones Newswires
March 25, 2020 17:26 ET (21:26 GMT)
Copyright (c) 2020 Dow Jones & Company, Inc.
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