Risk Adjusted Net Present Value: What is the current valuation of PMV Pharmaceuticals’s Rezatapopt

The revenue for Rezatapopt is expected to reach an annual total of $63 mn by 2040 globally based off GlobalData’s Revenue 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.

Rezatapopt Overview

Rezatapopt (PC-14586) is under development for the treatment of advanced multiple tumor types including ovarian, breast, prostate, small-cell lung, and endometrial cancer. The drug candidate acts by targeting Y220C mutated p53. It is administered through oral route. 

PMV Pharmaceuticals Overview

PMV Pharmaceuticals (PMV) is a precision oncology company that discovers and develops small molecule drugs for the treatment of cancer. The company’s lead product candidate, PC14586 is a selective p53 reactivator designed for the treatment of patients with metastatic solid tumors that have a p53 Y220C mutation. It is also investigating a tumor-agnostic drug targeting the p53 R273H mutation. PMV carries out clinical trials, research, and development to provide unique therapies for any patient whose tumor harbors these gene mutations. PMV is headquartered in Cranbury, New Jersey, the US.
The operating loss of the company was US$80.1 million in FY2023, compared to an operating loss of US$77 million in FY2022. The net loss of the company was US$69 million in FY2023, compared to a net loss of US$73.3 million in FY2022.

For a complete picture of Rezatapopt’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.