FDA's Controversial Leadership Shakeup: Prasad Steps Down

Vinay Prasad, the top official at the U.S. FDA, resigns after three tumultuous months. Known for his criticism of COVID-19 mandates, Prasad's tenure saw controversial regulatory actions. His departure is seen positively by some in the biotech sector, as concerns over patient choice and FDA credibility linger.

Vinay Prasad, who held the role of Director at the FDA's Center for Biologics Evaluation and Research, has resigned after a brief, yet controversial stint. Initially appointed in May, Prasad was outspoken about his criticism of U.S. COVID-19 mandates.

An FDA spokesperson explained that Prasad resigned to avoid being a distraction to the agency's work during the Trump administration, preferring to focus on his family in California. His departure follows unusual actions regarding Sarepta Therapeutics' gene therapy and other FDA decisions, raising questions about his approach and credibility.

The Nasdaq Biotechnology Index initially declined on Prasad's appointment but rebounded following his resignation. Notably, stocks in companies like Replimmune and Sarepta saw significant increases. Analysts suggest that appointing a more experienced official could restore the FDA's damaged credibility.

(With inputs from agencies.)