Company: OSRH
Filing Date: 2025-01-29
Form Type: S-4/A
Source: 0001213900-25-007923
Chunk: 907

Company: OSR Holdings, Inc.
Filing Date: 2025-01-29
Form: S-4/A
Chunk 907
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 within the projected timeframes, but the probability-weighted adjustments in the rNPV analysis take into account the probability of the product candidates coming to market. It should be noted that if some or all of OSR’s current product candidates do not obtain FDA approval or other regulatory approval, or are not introduced into the market because of technical, competitive, and other impediments, its actual free cash flow will vary from the financial projections. While OSR’s financial projections forecast that OSR may obtain profitability in the future, to the extent its programs are delayed, fail to obtain FDA approval, or are not introduced to the market, the projected financial results will be less likely to be achieved and it will take longer for OSR to obtain profitability, if it does at all. However, OSR has a portfolio of multiple programs, not all of which have to obtain FDA approval or be introduced to the market in order for OSR to be profitable or to derive a positive exit transaction with respect to a subsidiary company. The probability adjustments made by AF to its financial projections of OSR’s free cash flow are intended to account for these factors and we considered the projections and analyses conducted by AF in our deriving own assessment and valuation outcomes. Annex I-9 Determination of the Probabilities of Success Most of the projects being developed by subsidiaries of OSR relate to novel therapeutical approaches, primarily in the field of immune-oncology and regenerative medicine. Based on the BIO (Biotechnology Innovation Organization) meta-study conducted between 2012 and 2020 evaluating a total of 12,728 clinical and regulatory phase transitions from 9,704 development programs, across 1,779 companies, we selected the LOA for Immuno-Oncology from the Oncology Sub-category dataset and Protein from Novel Modalities dataset, for the rNPV model assumptions of Vaximm and Darnatein respectively. Oncology sub-category phase transition success rates and LOA Annex I-10 Phase transition success rates for drugs based on modality Based on conversation with OSR management and our own research, we allocated a specific LOA set to each project to reflect their own characteristics and added early-stage chance of successes (from Discovery to IND/CTA stage). To be noted that both subsidiary specific G&A and OSR G&A were not adjusted for risk in our models, and therefore, only discounted. Annex I-11 Determination of the Discount Rate The discount rate provides the hypothetical rate at which the stakeholders want their capital to accrete. There