Risk Adjusted Net Present Value: What is the current valuation of Soleno Therapeutics’s Diazoxide choline CR

The revenue for Diazoxide choline CR is expected to reach an annual total of $729 mn by 2034 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.

Diazoxide choline CR Overview

Diazoxide choline controlled release (DCCR) is under development for the treatment of Prader-Willi syndrome, hypothalamic and SH2B1 deficiency obesity, hyperphagic obesity. The drug candidate is formulated as a tablet and administered through oral route. It targets ATP sensitive inward rectifier potassium channel 11. It is a new chemical entity (NCE). The drug candidate was also under development for the treatment of Smith-Magenis syndrome, hypertriglyceridemia and dyslipidemia.

Soleno Therapeutics Overview

Soleno Therapeutics (Soleno) focuses on the development of novel therapeutics for the treatment of rare diseases. The company’s lead products includes Diazoxide Choline Controlled Release (DCCR), is a tablet that include crystalline salt formulation of diazoxide. Soleno provides cosense which is a portable device that is used to measure carbon monoxide in exhaled breath. The company offers various solutions to properly diagnose, monitor and care for children. It markets its products through its network of distributors. Soleno is headquartered in Redwood City, California, the US.
The operating loss of the company was US$24.4 million in FY2022, compared to an operating loss of US$31.5 million in FY2021. The net loss of the company was US$24.1 million in FY2022, compared to a net loss of US$30.9 million in FY2021.

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

This content was updated on 24 July 2024

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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.