Health
A Law to Help Neglected Diseases is Giving Billion-Dollar Drugs Government Freebies
Big Pharma is cashing in on FDA vouchers at the expense of smaller companies and nonprofits.
Image: Steph Davidson
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Vertex Pharmaceuticals Inc. has made over $20 billion in worldwide sales from a cystic fibrosis drug approved four years ago that can cost up to $300,000 a year.
With blockbuster sales like that, Vertex wouldn’t appear to need government assistance. But thanks to an obscure program designed to incentivize companies to make drugs for uncommon or neglected diseases, the Food and Drug Administration also awarded Vertex a bonus certificate that it can either use to expedite a future drug approval or sell for around $100 million.