Company: OSRH
Filing Date: 2025-01-31
Form Type: 424B3
Source: 0001213900-25-008874
Chunk: 903

Company: OSR Holdings, Inc.
Filing Date: 2025-01-31
Form: 424B3
Chunk 903
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 assets in its portfolio. Consequently, we find that it is fair to consider that the OSR business corresponds to the Investment Criteria of BLAC. 6. Fairness Opinion in connection with the Value of the Aggregate Consideration Novel, innovative and potentially commercially-viable biomedical products in research and clinical development are inherently difficult to make accurate fair valuation estimates. Results in drug developments are often binary. Novel pharmaceutical products in development are heterogeneous, often with unique benefits and adverse features, meaning that there are often no useful, direct comparables. Also, these product development projects provide no reasonable periodic income or profit that can be capitalized at an objective yield or multiple. Trying to predict the probability and financial impact of achieving key development milestones and market potential is highly speculative, even on active markets. The business model of biotech companies requires long capital-intensive R&D periods without revenues. As a result, the value and value development of projects, pipelines and companies are event driven. The assets are mostly intangible, in the form of IP and scientific data. The intangible nature of the assets in the biopharma industry is commonly quantified under Income-based approaches. One of the most broadly and commonly accepted methods in the industry is the rNPV (risk-adjusted Net Present Value) approach. Additionally, market-based approaches in the form of comparables and analogs, allow for the sourcing and corroboration of several assumptions, mostly at project and portfolio company level. In estimating the total Enterprise Value of OSR, we relied on the results from multiple scenarios using rNPV method, with consistency checks using market-based comparables and analogs. The NPV method estimates the future debt-free cash flows that an asset is expected to generate. Expected costs (cash outflows) mainly cover R&D, manufacturing, license fee payable to licensors (i.e., innovation sourced from universities or other industry players), general and administrative costs (G&A) and taxes and, in case the company is expected to commercialize the asset on its own, all cost of goods (COGs) and cost of marketing and sales (M&S). Expected revenues (cash inflows) depend on the conduction strategy and opportunities, they can be in the form of upfront, milestones and royalties in the case an asset is transferred to a third party for R&D continuation and commercialization (i.e., license of an asset), or in the form of sales may the biotech turn into a commercial-stage company with its own sales force, or in the form of service revenues. Expected revenues can also