The revenue for SQZ-AAC- HPV is expected to reach an annual total of $88 mn by 2038 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.
SQZ-AAC- HPV Overview
Cell therapy is under development for the treatment of HPV16+ solid tumors like anal cancer, cervical cancer, head and neck cancer, penile cancer, rectal, vulval cancer and vaginal cancer. The therapy consists of engineered red blood cells which carry tumor-associated antigen. It is developed based on cell squeeze technology platform.
SQZ Biotechnologies Overview
SQZ Biotechnologies (SQZ) is a pharmaceutical company. It develops cell-based therapies that harness the body’s natural immune system against cancer. The company utilizes CellSqueeze, a technology platform for engineering various cell functions as antigen presenting cells (APCs) for immune modulation to impact oncology and autoimmune disease applications. SQZ’s APC approach enables delivery of cancer-specific antigens to the cytosol of the APC which generates polyclonal T cell responses. The company collaborates with other academic institutions, pharmaceutical and biotechnology companies focusing on developing new cell therapies and approaches for that transform patient lives. It operates in Hong Kong and the US. SQZ is headquartered in Watertown, Massachusetts, the US.
The company reported revenues of (US Dollars) US$21.5 million for the fiscal year ended December 2022 (FY2022), a decrease of 20.7% over FY2021. The operating loss of the company was US$80.7 million in FY2022, compared to an operating loss of US$68.8 million in FY2021. The net loss of the company was US$79.5 million in FY2022, compared to a net loss of US$68.7 million in FY2021.
For a complete picture of SQZ-AAC- HPV’s valuation, buy the drug’s risk-adjusted NPV model (rNPV) here.
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.