Company: OSRH
Filing Date: 2025-01-24
Form Type: S-4/A
Source: 0001213900-25-006139
Chunk: 298

Company: OSR Holdings, Inc.
Filing Date: 2025-01-24
Form: S-4/A
Chunk 298
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 Darnatein. In the BLAC M&A Committee’s view, it would not be appropriate to compare the valuation of OSR Holdings, a relatively new hub -and-spokecompany, directly against the valuations of the larger and more -establishedpeers operating with the same corporate model. However, the BLAC M&A Committee also evaluated and acknowledged that there is growing recognition by market participants of the competitive advantages that the hub -and-spokemodel has demonstrated to the overall market and the industry in terms of business performance and share price performance relative to the composite index. The BLAC M&A Committee is of the view that, when several individual high -riskassets are “bundled” into a portfolio, the holding company owning and managing the portfolio may be able to generate a superior risk -adjustedreturn for the company’s shareholders due to the portfolio effect.

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Supported by observations such as these, the BLAC M&A Committee believes that if OSR Holdings can achieve its business objectives as presently reviewed, it is reasonable to view the valuation metrics of the more established hub -and-spokecompanies as a meaningful comparable reference. Furthermore, at the individual subsidiary level, each of the immuno -oncology(I/O) group and the regenerative medicine (DMOAD) companies (Vaximm and Darnatein respectively), could be viewed and evaluated as direct comparables to their industry peers. Both the I/O and DMOAD datasets includes “outliers”, i.e., companies with market capitalization and EV disproportionately larger than the other data points in the respective group. For instance, LigaChem Biosciences in the I/O group shows its market capitalization near $886 million and EV almost $1 billion, which is far greater than the values of most other comparables in the group. In the DMOAD group, Biosplice Therapeutics demonstrates values that are disproportionately greater than the rest of the group with an indicated private -marketequity valuation of $12 billion. Those outliers are the companies in very advanced phases of clinical developments in their respective field of treatments and should therefore be relevant as target valuations for OSR Holdings if and when OSR Holdings reaches the later stages of its pipeline development. However, to take a more conservative approach, the BLAC M&A Committee excluded the outliers from each dataset and compared the outcomes (the normalized market capitalizations and EVs) against the “observational analyses” with the outliers included. This way, the BLAC M&A Committee has taken a conservative