Company: OSRH
Filing Date: 2025-01-24
Form Type: S-4/A
Source: 0001213900-25-006139
Chunk: 292

Company: OSR Holdings, Inc.
Filing Date: 2025-01-24
Form: S-4/A
Chunk 292
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 it does not have a licensing deal at the time the valuation is conducted. Whether to execute a licensing deal is a business decision for the parties involved, while the fair market value of a drug candidate in the context of an rNPV analysis has to be derived by a function of various factors and assumptions taken by the valuation model, which most notably include the “probabilities of success” (i.e. likelihood of success for the drug candidate to advance through each stage of clinical development) and also the discount rate used in the process of discounting future cash flows over the projected period to the present time. Likewise, it was the BLAC M&A Committee’s business decision to accept the fair market value based on the $2+ billion licensing deal assumption, ____________ 9Prior to the company’s renaming from Biobetter Biologics into Darnatein, 10 https://www.alliedmarketresearch.com/osteoarthritis -treatment-market-A12691 11 https://www.ncbi.nlm.nih.gov/pmc/articles/PMC9128067/ 12Article 33, TRIPS Agreement

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which was based on the assumptions and underlying data in the preceding paragraph, and the BLAC M&A Committee concluded that the discounting factors such as the likelikhood of success in clinical developments were assumed in realistic terms to support their conclusion. Also, even though OSR Holdings has not entered into any significant licensing transaction, OSR Holdings confirmed in discussions with the BLAC M&A Committee that its initial due diligence on Darnatein uncovered that there have been discussions with global healthcare companies and negotiations for a licensing deal regarding Darnatein’s pipeline asset DRT101. Furthermore, under the new corporate structure as a subsidiary of OSR Holdings, Darnatein is expected to benefit from OSR Holdings’ global relationships, and particularly in South Korea where OSR Holdings is based and has strong connections and increasing visibility and exposure. Therefore, the BLAC M&A Committee viewed the valuation model of Darnatein as being reasonable, including the discount impact of an assumed $2 billion licensing deal, in their decision to approve the Business Combination. Additionally, given that Darnatein’s invention is of a potential first -in-classdrug to treat osteoarthritis -relatedconditions, its licensing deal may result in valuation of multi -billiondollars. Despite early stages of developments, initially for joint, Darnatein’s inventions and its platform technology have attracted interest from global pharmaceutical companies. Darn