BDI "US Ellison Pipeline Valuation at 600 Billion Won"

Evaluation of Four Pipeline Values Including Phase 3 Pancreatic Cancer Drug
Incorporating Clinical Success Probability Based on Expected Treatment and Special Patient Ratios

[Asia Economy Reporter Hyungsoo Park] VIDI announced on the 30th that the value of the pipeline owned by Allison Pharmaceuticals, a U.S. new drug development company entering the final stage of acquisition negotiations, reached 600 billion KRW.

Allison is developing new drug substances that can treat pancreatic cancer, lung cancer, pediatric osteosarcoma, brain cancer, and more. As a result of an evaluation agency assessing the pipeline using the risk-adjusted net present value method, the provisional value reached approximately 500 million USD (600 billion KRW).

A VIDI official introduced, "We applied a high discount rate reflecting risks such as the expected treatment rate, special patient ratio, and clinical trial success probability to account for the uncertainties in the bio business." He added, "Since the higher the discount rate, the lower the valuation, we measured and evaluated the value as conservatively as possible."

He emphasized, "Most of Allison's pipeline consists of orphan drugs, so profitability is good due to tax reductions and exclusive sales rights," and "If the main pipelines are successfully commercialized, VIDI's profitability can improve."

The pancreatic cancer second-line treatment ‘Glufosamide’ could become the only single second-line treatment in the global market if it receives final approval from the U.S. Food and Drug Administration (FDA). It has been designated as an orphan drug in the U.S. and Europe. It also obtained FDA approval for Special Protocol Assessment (SPA) for global Phase 3 clinical trials, securing FDA research support.

Allison aims to receive new drug approval (NDA) for Glufosamide by 2022 using the already acquired fast track. It has already signed distribution license agreements with Daewoong Pharmaceutical in Korea and pharmaceutical companies in China and Israel, securing royalty income.

Among the main pipelines, ‘ILC (Inhaled Lipid-Complexed Cisplatin)’ targets pediatric osteosarcoma and lung cancer. Allison is developing a treatment drug for lung metastasis, which commonly occurs in pediatric osteosarcoma patients. The treatment is being developed as an inhalation formulation.

Phase 2 clinical trials for pediatric osteosarcoma treatment have been completed. Preparations for Phase 3 clinical trials are planned to be completed by next year. Once product sales begin, royalties will be received from China, Hong Kong, Macau, and Taiwan. It has been designated as an orphan drug in the U.S. and Europe. The Phase 2 clinical trial for lung cancer indication is targeted to be completed by 2022.

‘DBD (Dibromoducitol)’, indicated for brain cancer, is an oral anticancer drug that passes through brain blood vessels. Currently, Phase 2 clinical trials as a monotherapy have been completed.

This content was produced with the assistance of AI translation services.