LiProSal is a small molecule commercialized by GSK, with a leading Phase II program in Dementia Associated With Alzheimer’s Disease. According to Globaldata, it is involved in 2 clinical trials, which were completed. GlobalData uses proprietary data and analytics to provide a complete picture of LiProSal’s valuation in its risk-adjusted NPV model (rNPV). Buy the model here.
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The revenue for LiProSal is expected to reach an annual total of $19 mn by 2033 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.
LiProSal Overview
Liprosal is under development for the treatment of bipolar disorder, major depressive disorder, post traumatic stress disorder (PTSD), dementia related to mild, moderate, and severe cognitive impairment associated with Alzheimer’s disease. The drug candidate is a cocrystal based therapy comprising of lithium salicylate and L-proline. It is administered orally. Lithium acts by targeting glycogen synthase kinase 3 alpha, beta (GSK3A, GSK3B) and inositol mono/polyphosphatase (IMPase, IPPase). L-proline reduces the hygroscopic property of salicylate salt. The drug candidate was also under development for fragile x syndrome.
GSK Overview
GSK is a healthcare company that focuses on developing, manufacturing and commercializing general medicines, specialty medicines and vaccines. It offers drugs for the treatment of diseases such as HIV, respiratory, cancer, immuno-inflammation, anti-viral, central nervous system (CNS), metabolic, cardiovascular, and urogenital, anti-bacterials, dermatology and rare diseases. The company also offers over-the-counter (OTC) products for pain relief, oral health, nutrition, skin health and gastro-intestinal diseases. GSK’s vaccine portfolio covers various diseases including hepatitis, diphtheria, tetanus, whooping cough, rotavirus and HPV infections, measles and bacterial meningitis, among others. The company sells its products through wholesalers, pharmacies, hospitals, physicians and other groups worldwide. GSK is headquartered in Brentford, Middlesex, the UK.
The company reported revenues of (British Pounds) GBP29,324 million for the fiscal year ended December 2022 (FY2022), an increase of 18.7% over FY2021. In FY2022, the company’s operating margin was 21.9%, compared to an operating margin of 17.5% in FY2021. In FY2022, the company recorded a net margin of 51%, compared to a net margin of 17.8% in FY2021.
The company reported revenues of GBP6,951 million for the first quarter ended March 2023, a decrease of 5.8% over the previous quarter.
For a complete picture of LiProSal’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.
