FDA's Departure of Gene Therapy Critic Dr. Vinay Prasad Raises Questions About Regulatory Outlook for Sarepta, Capricor, and Other Gene Therapy Stocks.

Wednesday, Jul 30, 2025 11:10 am ET1min read

FDA's Center for Biologics Evaluation and Research (CBER) director Vinay Prasad resigned amid pressure from the White House and criticism from a right-wing activist. Prasad had criticized the biopharmaceutical industry and the FDA for using accelerated approvals based on surrogate endpoints. His departure raises questions about the impact on the guidelines and regulatory development for novel therapies, particularly in rare diseases. The FDA recently reversed its decision to halt Sarepta's Elevidys shipments and issued a Complete Response Letter to Capricor's Deramiocel BLA.

The resignation of Vinay Prasad, the director of the FDA's Center for Biologics Evaluation and Research (CBER), has sparked significant debate and raised questions about the future of regulatory guidelines for novel therapies, particularly in the realm of rare diseases. Prasad's departure, amid pressure from the White House and criticism from a right-wing activist, comes at a critical time as the FDA continues to navigate the complexities of accelerated approvals based on surrogate endpoints.

The resignation of Prasad, who had been a vocal critic of the biopharmaceutical industry and the FDA's use of accelerated approvals, raises concerns about the potential impact on the regulatory development of new therapies. His departure could lead to a shift in the FDA's approach to novel therapies, with a particular focus on rare diseases, which often rely on accelerated approvals due to the small patient populations and the urgency of treatment.

The recent regulatory developments surrounding Sarepta Therapeutics' Elevidys and Capricor's Deramiocel BLA underscore the challenges faced by the biopharmaceutical industry. The FDA reversed its decision to halt Elevidys shipments, allowing Sarepta to resume shipments for ambulatory Duchenne muscular dystrophy (DMD) patients following a review of safety data [1]. However, the company continues to face heightened regulatory scrutiny and legal challenges due to patient deaths linked to the therapy.

Similarly, the FDA issued a Complete Response Letter to Capricor's Deramiocel BLA, indicating that further data is needed to support the therapy's approval. This decision highlights the FDA's commitment to rigorous scientific review and the potential for regulatory hurdles in the development of new therapies.

The resignation of Prasad and the ongoing regulatory scrutiny of therapies like Elevidys and Deramiocel underscore the need for a balanced approach to regulatory development. While accelerated approvals are crucial for bringing lifesaving therapies to patients with rare diseases, they must be accompanied by robust safety and efficacy data to ensure the long-term benefit of these treatments.

Investors and financial professionals should closely monitor these developments, as they have the potential to impact the regulatory landscape and the future of rare disease therapies. The resignation of Prasad and the ongoing regulatory reviews highlight the importance of transparency, scientific rigor, and patient safety in the development and approval of novel therapies.

References:
[1] https://musculardystrophynews.com/news/sarepta-resume-shipments-elevidys-ambulatory-duchenne-md-patients/

FDA's Departure of Gene Therapy Critic Dr. Vinay Prasad Raises Questions About Regulatory Outlook for Sarepta, Capricor, and Other Gene Therapy Stocks.

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