Company: OSRH
Filing Date: 2025-01-31
Form Type: 424B3
Source: 0001213900-25-008874
Chunk: 293

Company: OSR Holdings, Inc.
Filing Date: 2025-01-31
Form: 424B3
Chunk 293
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 reflecting possible launches of generic competitors after the patent expiration. On the other hand, the report does not assume any “Terminal Value” which is normally built into the valuation model at the end of the projected cash flow period and often times occupies a significant portion of the entire valuation outcome, which means that a going concern was not assumed for the purposes of the valuation on Darnatein. The BLAC M&A Committee noted that the Darnatein valuation model includes an assumption that a $2+ billion licensing deal would be realized and that this assumption has not materialized. However, the BLAC M&A Committee also noted that, in the pre -clinicalbiotech space, rNPV analysis is oftentimes used as a basis for a licensor and a licensee to negotiate the licensing value of drug candidates; i.e. rNPV analysis is a common method used to determine the fair market value of a drug candidate even when 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-A 12691 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