Risk adjusted net present value: What is the current valuation of F. Hoffmann-La Roche’s Basmisanil?
Basmisanil is a small molecule commercialized by F. Hoffmann-La Roche, with a leading Phase II program in Dup15q Syndrome. According to Globaldata, it is involved in 14 clinical trials, of which 10 were completed, 1 is ongoing, and 3 were terminated. GlobalData uses proprietary data and analytics to provide a complete picture of Basmisanil’s valuation in its risk-adjusted NPV model (rNPV). Buy the model here.The revenue for Basmisanil is expected to reach an annual total of $1 mn by 2037 in the US based off GlobalData’s Expiry Model. The drug’s revenue forecasts along with estimated costs are used to measure the value of an investment opportunity in that drug, otherwise known as net present value (NPV). Applying the drug’s phase transition success rate to remaining R&D costs and likelihood of approval (LoA) to sales related costs provides a risk-adjusted NPV model (rNPV). The rNPV model is a more conservative valuation measure that accounts for the risk of a drug in clinical development failing to progress.Basmisanil OverviewBasmisanil (RG1662, RO5186582) is under development for the treatment of Dup15q Syndrome. It is administered orally. It is a small molecule, GABA-A subunit 5 antagonist. It is a new molecular entity (NME). It was under development for the treatment of cognitive impairment associated with schizophrenia, Down syndrome, Alzheimer's disease and ischemic stroke.F. Hoffmann-La Roche OverviewF. Hoffmann-La Roche (Roche) is a biotechnology company that develops drugs and diagnostics to treat major diseases. It provides medicines for the treatment of cancer, other auto-immune diseases, central nervous system disorders, ophthalmological disorders, infectious diseases, and respiratory diseases. The company also offers in vitro diagnostics, tissue-based cancer diagnostics, and diabetes management solutions. Roche conducts research to identify novel methods to prevent, diagnose, and treat diseases. The company offers its products and services to hospitals, healthcare professionals, commercial laboratories, researchers, and pharmacists. Together with its subsidiaries and partners, the company has operations in various countries. Roche is headquartered in Basel, Switzerland. The company reported revenues of (Swiss Francs) CHF63,281 million for the fiscal year ended December 2022 (FY2022), an increase of 0.8% over FY2021. In FY2022, the company’s operating margin was 27.6%, compared to an operating margin of 28.9% in FY2021. In FY2022, the company recorded a net margin of 19.6%, compared to a net margin of 22.2% in FY2021. For a complete picture of Basmisanil’s valuation, buy the drug’s risk-adjusted NPV model (rNPV) here.
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