Company: SMNR
Filing Date: 2025-04-21
Form Type: S-4/A
Source: 0001193125-25-087342
Chunk: 330

Company: Semnur Pharmaceuticals, Inc.
Filing Date: 2025-04-21
Form: S-4/A
Chunk 330
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 of 08-14-24. |

| • |     | The terminal growth rate after 2043: Despite the projected success of the drug, it is prudent to assume a low-growth scenario after 2043 as there will be more competition from more effective or innovative drug candidates. CB Capital recognized that global demographics will remain favorable for the indication after 2043, but a low-growth scenario of 1% was reasonable given the potential for newer indications or alternative treatments. |

| • |     | Further risk adjustment: CB Capital, in its research, findings and interviews with Semnur management, concluded that a further risk adjustment of 50% was applied to the NPV calculations. Assumptions to applying this discount are as follows: |

| • |     | Competitive drug, dexamethasone, is generic. |

| • |     | Probability of SP-102 receiving FDA approval is 85%. |

| • |     | Further adjustment for competitive entry into market. |

Conclusion The values derived from the different analyses that CB Capital used show a valuation range between $2.001 billion to $2.554 billion. The Merger Consideration to be paid by Denali of $2.5 billion is in the valuation ranges of the analyses. Based on its analyses, it is CB Capital’s opinion that, the following valuation range for the Semnur acquired assets, from a financial point of view, of between $2.001 billion to $2.554 billion and from a financial point of view, the Business Combination is a fair one. The type and amount of consideration payable in the Business Combination was determined through negotiations between representatives of Denali and Semnur, and was approved by the Denali Board. The decision to enter into the Merger Agreement was solely that of the Denali Board. CB Capital’s opinion and analyses was only one of many factors considered by the Denali Board in its evaluation of the Business Combination and should not be viewed as determinative of the views of the Denali Board or Denali management with respect to the Business Combination. Fees and Expenses On August 15, 2024, CB Capital rendered its oral opinion to the Denali Board (which was subsequently confirmed in writing by delivery of CB Capital’s written opinion dated as of August 14, 2024) to the effect that, as of August 14, 2024, and subject to the procedures followed, assumptions made, qualifications and limitations on the review undertaken and other matters considered by CB Capital