Company: LIMN
Filing Date: 2025-01-16
Form Type: POS AM
Source: 0001104659-25-003835
Chunk: 240

Company: Liminatus Pharma, Inc.
Filing Date: 2025-01-16
Form: POS AM
Chunk 240
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 using a comprehensive approach. Following the TDT License Termination, the enterprise value associated with Liminatus was changed to $175,000,000. This valuation was arrived at by Iris through: (i) research and analysis of comparable companies (with respect to size, maturity, financial status, and research targets), and (ii) assistance from third-party advisors, consultants and experts. This valuation was derived using a comprehensive approach.

As Liminatus does not yet have revenues, the cash flows prior to approval of any treatment or vaccine will be negative. That means the “standard” valuation multiples like enterprise value to EBITDA or price to earnings are less relevant. There are some alternative multiples, such as enterprise value to invested research and development, which are essentially cost-based valuations. Iris believes cost based valuations are not good indicators of future value for biotechnology companies. The comparative valuation methodology is a popular methodology which utilizes public market comparables, or comparable M&A transactions, but because Iris believes most biotechnology companies are idiosyncratic, Iris looked at a range of criteria to find likeness over exact matches.

In light of these differences, Iris sought assistance from a multitude of third-party advisors, consultants and experts, whose specialized knowledge of the sector and insights bolstered the valuation process. Iris believes that these external collaborators brought diverse perspectives and extensive experience to the table, ensuring that the valuation of Liminatus was robust and defensible. Iris undertook the following high-level view to estimate value ranges using two methods:

First, a research and analysis of listed comparable companies was conducted, scrutinizing factors such as stage of development, number of assets, number of ongoing clinical trials and stage of revenue within similar target sectors. Iris believes that this examination ensured that Liminatus was benchmarked against relevant industry peers, providing a solid foundation for determining its enterprise value.

Second, Iris completed a high level market analysis, looking at the possible income with a bottom up approach based on general industry data assumptions. As the commercialization models for each of the three technologies is still in its initial stage, a probability adjusted bottom-up approach was used for the purposes of determining biotechnology licenses and values for contract discussions.

Through this analysis, a range of enterprise value of Liminatus was not only determined, but also validated by industry standards and expert opinions. This ensured that the value remained unchanged throughout the transaction, reflecting the value of Liminatus in the marketplace.

On December 1, 2022, the press release and Form 8-K were filed