Company: NCEL
Filing Date: 2025-09-10
Form Type: 424B3
Source: 0001213900-25-086600
Chunk: 737

Company: NewcelX Ltd.
Filing Date: 2025-09-10
Form: 424B3
Chunk 737
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agingwill be carried out to reach the appropriate beta for the estimated company. Sometimes it is common to include additional premiums for the cost of capital in respect of business risks which are not “perceived” by the CAPM, such as the premium for small companies (small -sizepremium) and other risk premiums.

| Moore Financial Consulting |

Annex E-20

Valuation Methodology in Kadimastem’s valuation Kadimastem’s valuation was performed under the income approach, using the Risk -Adjusted Net Present Value (rNPV)method. This method enhances standard DCF analysis by adjusting cash flow projections for the probability of success, i.e., adjusting for the probability of successfully advancing through clinical trials and regulatory approval. As a result, this method is also referred to as the expected net present value (eNPV) method. Among the various early -stagebiotech valuation methods, the rNPV method is the most appropriate. This method is suited for valuing: •Preclinical and clinical stage biotech assets •Novel pharma and biotech drugs undergoing development •Other life sciences assets that undergo phased development The mechanics of rNPV involve: •Estimating clinical trial and approval probabilities •Adjusting cash flow projections for risk using these probabilities •Discounting risk -adjustedcash flows to present value •Summing risk -adjustedcash flows to derive rNPV This captures the risks inherent in biotech drug development. rNPV provides a more accurate asset valuation than basic DCF as it enables conducting pharma and biotech valuation based on the stage (preclinical, Phase 1 -3) of development of assets. As mentioned in the company description, Kadimastem is currently in the process of developing two indications: • AstroRx ®— clinical development of a cell therapy for treating amyotrophic lateral sclerosis (ALS). • IsletRx— a treatment for insulin -dependentdiabetes (type 1 diabetes and type 2 diabetes requiring insulin). We have valued Kadimastem under the assumption that these are it’s only two projects, therefore we accounted for expected income and expenses related to these indications alone and did not take into consideration developments that the Company might be performing in the future. Another assumption made for the sake of the current valuation is that the Company will develop the two indications on its own until the successful termination of the Phase II clinical trials and following that will seek for a business agreement with a large pharma company that will perform the Phase III clinical trials (on its own account) and