Company: SMNR
Filing Date: 2025-07-23
Form Type: S-4/A
Source: 0001193125-25-163401
Chunk: 332

Company: Semnur Pharmaceuticals, Inc.
Filing Date: 2025-07-23
Form: S-4/A
Chunk 332
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 the above companies could be potential acquirers of Semnur. While the history, size, and financial performance of the comparable public companies chosen by CB Capital differ from that of Semnur, CB Capital concluded that choosing a mix of direct competitors, including manufacturers of the current generic drug dexamethasone, indirect competitors operating in the chronic pain and pain management space, potential distribution partners, and potential acquirers compiled a mix of key characteristics similar to Semnur in calculating the WACC. Per the National Library of Medicine, 90% of drugs fail clinical trials. However, Semnur’s SP-102 completed a Phase 3 trial, meeting primary and important key secondary endpoints. SP-102 completing all 3 phases of clinical trials supports its comparability to the commercial companies that also passed clinical trials. Additionally, the SP-102 treatment decreases pain intensity for over a month in sciatica patients and results in statistically significant and clinically meaningful improvement in the disability index score while maintaining safety comparable to the placebo treatment. Such pain treatment aspect of SP-102 allows it to compete not only with small and mid-cap companies but also with large and mega cap companies competing in the pain treatment market. Furthermore, companies included in the universe of guideline companies, regardless of their capitalization sizes, hold a pipeline of pre-commercial drugs, making them comparable to Semnur. Lastly, market leaders have historically had valuation increases while pending FDA approval on one or more drugs. These market leaders were analyzed to compare valuation increases that Semnur may also experience as they go through the remaining clinical trials of SP-102.

These publicly held guideline companies were further reviewed in detail regarding their operational performance, financial performance, and drug indication pipelines. Historical operating financial performance was evaluated

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for each of the guideline public companies, including market value of equity, interest bearing debt, cash, LTM earnings before taxes, LTM tax expense, ratio of equity to total capital, ratio of debt to total capital, and predicted 5-year levered beta from S&P Capital IQ estimates. These metrics are used to calculate the beta, a component used in deriving the WACC. Pre-commercial companies do not generate revenue, and it is not possible to review all of the foregoing metrics to evaluate operating financial performance. Because the analysis of operating financial performance and the calculation of beta requires a review of all of the foregoing metrics rather than selecting a few that are available, pre-commercial companies were excluded. Financial performance metrics typically utilized in the calculation