Company: OSRH
Filing Date: 2025-05-20
Form Type: 10-Q
Source: 0001213900-25-045947
Chunk: 312

Company: OSR Holdings, Inc.
Filing Date: 2025-05-20
Form: 10-Q
Item: Part I, Item 8
Chunk 312
---
Pro
forma data may not be indicative of the results that would have been obtained had these events occurred at the beginning of the periods
presented, nor is it intended to be a projection of future results.

The
acquisition-date fair value of Darnatein was measured using the Discount Cash Flow (“DCF”) method and the Risk adjusted Net
Present Value (“r-NPV”) method by outside valuation professionals. Key estimations and assumptions used in measuring the
fair value of Darnatein are as follows:

●19.88% of discount rate (Weighted Average Cost of Capital: WACC) used in discounting operating cashflows

●Patent technology will generate operating revenue for 20 years

(*1)OSR ordinary shares issued for purchase consideration of $81,436,889
is 590,425 shares at $138 per share. The number of OSR ordinary shares to be issued was determined based on negotiation with former owners
of Darnatein.

23

Patent
technology - Darnatein

Details
of patent technology recognized from the acquisition of Darnatein that occurred during the year ended December 31, 2023 are set forth
in the table below.

     Amount 
  
    Patent technology project code:  

    DRT 101 
    $73,513,419 

DRT-101
is a synthetic bio-signaling molecule that replaces BMPRII-binding segments of BMP-7, one of the bone-forming proteins, with high affinity
ActRII binding segments of Activin A, a member of the transforming growth factor β (TGF-β) superfamily along with BMP-7. In
nature, endogenous BMP7 promotes chondrogenesis in damaged cartilage tissue by signaling primarily via the type II receptor BMPRII and
to a lesser extent via the activin type II receptor ActRII, which it binds with lower affinity. DRT-101 amplifies intracellular regeneration
signaling capacity compared to natural BMP-7 and allows for regeneration and restoration of mechanically depleted cartilage cells to
normal levels.

Osteoarthritis
is the most common joint disorder in the aging population. Although surgical treatment of osteoar-thritis can reduce pain and improve
joint mobility and function, the operative management of osteoarthritis is associated with significant cost and morbidity. Unmet medical
needs for DRT-101 for Osteoarthritis are enormous specially with aging population. Unique