Company: OSRH
Filing Date: 2025-01-24
Form Type: S-4/A
Source: 0001213900-25-006139
Chunk: 293

Company: OSR Holdings, Inc.
Filing Date: 2025-01-24
Form: S-4/A
Chunk 293
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 the risk -adjustednet present value (“rNPV”) models prepared by third -partyvaluation consultants (as described above) engaged by OSR Holdings for the acquisitions of Vaximm and Darnatein from December 2022 and March 2023, respectively. The rNPV analysis is the most commonly used valuation methodology in the life sciences industry for its advantages of being able to separate the risks innate to certain company and market from the risks associated with clinical trials and regulatory affairs.

175 While rNPV analysis is the “biopharma equivalent” of discounted cash flow (DCF) analysis, the BLAC M&A Committee also reviewed the market comparable analyses included in the same valuation reports on Vaximm and Darnatein. The BLAC M&A Committee considered such comparable company analyses as a meaningful way to compare Vaximm and Darnatein to their public market analogues. The BLAC M&A Committee took a balanced approach to its consideration of the historical information by taking a weighted average of the comparable company analyses and the rNPV analyses. In discussions with the BLAC M&A Committee, Mr. Hwang mentioned that Vaximm is not merely a biotech company with a drug development pipeline, but directly possesses its own platform technology underlying its pipeline which is based on a live attenuated bacterial vaccine strain. It is modified to stimulate patients’ immune response and the products are orally administered to initiate a systematic T -cellresponse in the gut. Vaximm’s platform technology can be adapted to target a wide range of cancer -relatedantigens (so called “Plug and Play” adaptability). Therefore, the BLAC M&A Committee concluded that it is important to consider the potential value of the Vaximm platform technology. The BLAC M&A Committee also noted that the 2020 valuation report from Avance, although outdated by 3 years, still presents a meaningful data point to consider with respect to Vaximm’s valuation given the global pandemic which consumed almost 3 years between the publication of the report and their review thereof. In light of the age of the report, the BLAC M&A Committee considered (i) changes to the underlying assumptions in the report, including the removal of the COVID -19(VXM COVID -19) program and the neoantigen program (VXM NEO) from Vaximm’s pipeline, which accounted for approximately 11.5% and 6.7%, respectively, of Vaximm’s pipeline value as indicated in the original Avance model.