The revenue for KB-0742 is expected to reach an annual total of $62 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.

KB-0742 Overview

KB-0742 is under development for the treatment of castration resistant prostate cancer, soft tissue sarcoma and MYC-dependent acute myeloid leukemia, solid tumors, ovarian cancer, chordoma, non-Hodgkin lymphoma, soft tissue sarcoma, bladder cancer, rectal cancer , germ cell tumors; uterine cancer, colorectal cancer, myxoid liposarcoma, non-small cell lung cancer (NSCLC), small-cell lung cancer (SCLC), triple-negative breast cancer (TNBC), gastric cancer, gastroesophageal (GE) junction carcinomas, diffuse large B-cell carcinoma, NUT midline carcinoma, adenoid cystic carcinoma, neuroblastoma tumors, ewing sarcoma (EW) and alveolar rhabdomyosarcoma (ARMS). It is administered through oral route as a capsule. The drug candidate acts by targeting cyclin-dependent kinase 9 (CDK9). It is developed based on small molecule microarray (SMM) platform.

Kronos Bio Overview

Kronos Bio (Kronos) is a clinical-stage biopharmaceutical company that discover and developed therapeutics that target the dysregulated transcription that causes cancer and other serious diseases. The company products pipeline includes KB-0742 for the treatment of MYC-amplified solid tumors and other transcriptionally addicted tumors and Lanraplenib for the treatment of elapsed/refractory FLT3-mutated AML. Kronos is also evaluating drugs targeting prostate cancer, multiple myeloma, neuroendocrine cancer and acute myeloid leukemia. The company operates a research facility in Cambridge, Massachusetts. Kronos is headquartered in San Mateo, California, the US.

The operating loss of the company was US$137.1 million in FY2022, compared to an operating loss of US$151.4 million in FY2021. The net loss of the company was US$133.2 million in FY2022, compared to a net loss of US$151.1 million in FY2021. The company reported revenues of US$1.9 million for the second quarter ended June 2023, an increase of 52.7% over the previous quarter.

For a complete picture of KB-0742’s valuation, buy the drug’s risk-adjusted NPV model (rNPV) here.

This content was updated on 3 November 2023

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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.