Abeona Therapeutics Finalizes Agreement for $155 Million Sale
Abeona Therapeutics Closes $155 Million Priority Review Voucher Deal
Abeona Therapeutics Inc. (Nasdaq: ABEO) has made headlines by entering into a definitive agreement to sell its Rare Pediatric Disease Priority Review Voucher (PRV) for an impressive $155 million. This substantial financial move marks a significant milestone for the company as they navigate the dynamics of their operational goals.
The PRV was awarded to Abeona after the U.S. Food and Drug Administration (FDA) granted approval for ZEVASKYN™ (prademagene zamikeracel), a groundbreaking treatment in the biotech field. With this sale, Abeona is poised to enhance its cash reserves, ensuring that they can adequately support more than two years of operational expenses without needing additional capital, excluding revenues generated from ZEVASKYN sales.
Financial Implications of the Sale
Joe Vazzano, the Chief Financial Officer of Abeona, expressed confidence regarding the newly acquired funds. He noted that the revenue from this PRV sale will provide a strong financial foundation for the company's initiatives. Furthermore, with ZEVASKYN expected to become available to patients in the near future, Abeona forecasts a profitability horizon beginning in early 2026.
Transaction Details and Advisors
The completion of this transaction is subject to standard closing conditions, including the expiration of the associated waiting period under the Hart-Scott Rodino (HSR) Antitrust Improvements Act. For those keeping track of the advisory side, Stifel has taken the lead as financial advisor, with Jefferies also contributing to the transaction's structuring.
Spotlight on ZEVASKYN and Company Innovations
About Abeona Therapeutics
Abeona Therapeutics is a commercial-stage biopharmaceutical firm recognized for its dedication to developing cell and gene therapies targeting severe diseases. Among its innovations, ZEVASKYN™ stands out as the first and only autologous cell-based gene therapy aimed at treating wounds in pediatric and adult patients suffering from recessive dystrophic epidermolysis bullosa (RDEB). The company operates a fully integrated cGMP manufacturing facility located in Cleveland, Ohio, designated specifically for the commercial production of ZEVASKYN.
Research and Development Focus
Abeona Therapeutics is not stopping with ZEVASKYN. The company is presently advancing a robust development portfolio concentrating on adeno-associated virus (AAV)-based gene therapies, particularly for ophthalmic diseases that manifest a significant unmet medical need. The next-generation AAV capsids they are utilizing are being meticulously evaluated to enhance tropism profiles, broadening the scope of treatment for various debilitating diseases.
Frequently Asked Questions
What is the significance of the $155 million sale?
The sale enables Abeona Therapeutics to cover over two years of operational costs without additional capital needs and generates resources for ongoing projects.
What is ZEVASKYN?
ZEVASKYN™ is an autologous cell-based gene therapy that treats wounds in patients with recessive dystrophic epidermolysis bullosa, marking a significant breakthrough in treatment options.
What does the term Priority Review Voucher mean?
A Priority Review Voucher is a tool awarded by the FDA that can expedite the review process for a new drug, enhancing its market introduction potential.
What are the company's future prospects?
With ZEVASKYN's anticipated launch and the financial cushion from the PRV sale, Abeona expects to achieve profitability shortly in 2026.
Who are the financial advisors for this transaction?
Stifel is the lead financial advisor for the transaction, with Jefferies also playing a significant advisory role.
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