Batiraxcept is a fusion protein commercialized by Aravive, with a leading Phase III program in Ulcerative Colitis. According to Globaldata, it is involved in 12 clinical trials, of which 3 were completed, 6 are ongoing, 1 is planned, and 2 were terminated. GlobalData uses proprietary data and analytics to provide a complete picture of Batiraxcept’s valuation in its risk-adjusted NPV model (rNPV). Buy the model here.
The revenue for Batiraxcept is expected to reach an annual total of $433 mn by 2036 in the US based off GlobalData’s Expiry Model. The drug’s revenue forecasts along with estimated costs are used to measure the value of an investment opportunity in that drug, otherwise known as net present value (NPV). Applying the drug’s phase transition success rate to remaining R&D costs and likelihood of approval (LoA) to sales related costs provides a risk-adjusted NPV model (rNPV). The rNPV model is a more conservative valuation measure that accounts for the risk of a drug in clinical development failing to progress.
Batiraxcept Overview
AVB-500 is under development for the treatment of acute myelogenous leukaemia (AML), metastatic urothelial cancer including renal pelvis cancer, ureter cancer, urinary bladder cancer, urethral cancer, uterine cancer and solid tumors including platinum-resistant recurrent epithelial ovarian cancer, fallopian cancer, peritoneal cancer, pancreatic cancer, renal cancer, lung cancer, breast cancer, Zika virus infections, kidney fibrosis (IgA nephropathy), clear cell renal cell carcinoma (ccRCC), and an undisclosed cancer indication (3rd oncology), non-small cell lung cancer. The drug candidate is administered through intravenous route. The drug candidate is a fusion protein which acts by targeting growth arrest-specific protein 6 (GAS6).
Aravive Overview
Aravive, formerly Versartis, is a biopharmaceutical company that develops, manufactures and commercializes medicines for the treatment of life-threatening diseases. The company’s lead product candidate include batiraxcept (AVB-500), binds to GAS6 and prevents AXL signaling to inhibit metastasis, tumor growth and restore sensitivity to anti-cancer agents. Its product treats ovarian cancer, clear cell renal cancer, pancreatic adenocarcinoma, and fibrosis. The company partners with WuXi Biologics Limited and 3D Medicines Inc., in China, Taiwan, Hong Kong and Macau to prevent human oncological diseases. Aravive is headquartered in Houston, Texas, the US.
The company reported revenues of (US Dollars) US$7.4 million for the fiscal year ended December 2021 (FY2021), an increase of 30.9% over FY2020. The operating loss of the company was US$40.7 million in FY2021, compared to an operating loss of US$30.8 million in FY2020. The net loss of the company was US$39.2 million in FY2021, compared to a net loss of US$30.5 million in FY2020.
The company reported revenues of US$5 million for the third quarter ended September 2022, compared to a revenue of US$1.6 million the previous quarter.
For a complete picture of Batiraxcept’s valuation, buy the drug’s risk-adjusted NPV model (rNPV) here.
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GlobalData, the leading provider of industry intelligence, provided the underlying data, research, and analysis used to produce this article.
To create this model, GlobalData takes into account factors including patent law, known and projected regulatory approval processes, cash flows, drug margins and company expenses. Combining these data points with GlobalData’s world class analysis creates high value models that companies can use to help in evaluation processes for each drug or company.
The rNPV method integrates the probability of a drug reaching a clinical stage into the cash flow at that time, which provides a more accurate valuation, as it considers the probability that the drug never makes it through the clinical pathway to commercialization. GlobalData’s rNPV model uses proprietary likelihood of approval (LoA) and phase transition success rate (PTSR) data for the indication in the highest development stage, which can be found on GlobalData’s Pharmaceutical Intelligence Center.
