Risk Adjusted Net Present Value: What is the current valuation of Inhibikase Therapeutics’s Risvodetinib

The revenue for Risvodetinib is expected to reach an annual total of $42 mn by 2036 globally 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.

Risvodetinib Overview

Risvodetinib (Ikt-148009) is under development for the treatment of Parkinson’s disease (PD), dysphagia, neurogenic constipation and multiple system atrophy. The drug candidate is administered orally. It acts by targeting Abelson tyrosine kinase (BCR-ABL) enzyme and ABL1 (c-Abl). It is developed based on Re-engineering Approach with Metabolism Preserved (RAMP) technology.

Inhibikase Therapeutics Overview

Inhibikase Therapeutics is a biotechnology business dedicated to the development and commercialization of small-molecule kinase inhibitor therapeutics for the safe and effective treatment of neurological illnesses both inside and outside the brain. The company is headquartered in Atlanta, Georgia, the US.

The company reported revenues of (US Dollars) US$0.1 million for the fiscal year ended December 2022 (FY2022), a decrease of 96% over FY2021. The operating loss of the company was US$18.1 million in FY2022, compared to an operating loss of US$14.8 million in FY2021. The net loss of the company was US$18.1 million in FY2022, compared to a net loss of US$14.8 million in FY2021.

For a complete picture of Risvodetinib’s valuation, buy the drug’s risk-adjusted NPV model (rNPV) here.

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GlobalData, the leading provider of industry intelligence, provided the underlying data, research, and analysis used to produce this article.

To create this model, GlobalData takes into account factors including patent law, known and projected regulatory approval processes, cash flows, drug margins and company expenses. Combining these data points with GlobalData’s world class analysis creates high value models that companies can use to help in evaluation processes for each drug or company.

The rNPV method integrates the probability of a drug reaching a clinical stage into the cash flow at that time, which provides a more accurate valuation, as it considers the probability that the drug never makes it through the clinical pathway to commercialization. GlobalData’s rNPV model uses proprietary likelihood of approval (LoA) and phase transition success rate (PTSR) data for the indication in the highest development stage, which can be found on GlobalData’s Pharmaceutical Intelligence Center.