Ondansetron Hydrochloride is a small molecule commercialized by Adial Pharmaceuticals, with a leading Phase III program in Alcohol Addiction. According to Globaldata, it is involved in 3 clinical trials, of which 2 were completed, and 1 is planned. GlobalData uses proprietary data and analytics to provide a complete picture of Ondansetron Hydrochloride’s valuation in its risk-adjusted NPV model (rNPV). Buy the model here.
The revenue for Ondansetron Hydrochloride is expected to reach an annual total of $78 mn by 2034 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.
Ondansetron Hydrochloride Overview
Ondansetron (AD-04) is under development for the treatment of alcohol use disorder. AD-04 is a formulation of ondansetron. It is administered through intravenous route. Ondansetron is a highly specific and selective serotonin 5-HT3 receptor antagonist. It was also under development for the treatment of obesity, opioid use disorder/addiction and smoking cessation.
Adial Pharmaceuticals Overview
Adial Pharmaceuticals (Adial Pharma) is a clinical-stage biopharmaceutical company that develops therapeutic agents. The company focuses on developing genetically targeted, serotonin-3 receptor antagonist AD04, for the treatment of alcohol use disorder (AUD) and other addictive disorders such as gambling, opioid use disorder and obesity. It is also conducting the clinical phase of the ONWARD pivotal phase 3 clinical trial for the potential treatment of AUD by using AD04. In addition, the company through its subsidiary developing adenosine analogs for the treatment of cancer, diabetes, pain, asthma and other disorders. The company collaborates with universities and medical colleges to develop therapies. Adial Pharma is headquartered in Charlottesville, Virginia, the US.
The operating loss of the company was US$19.3 million in FY2021, compared to an operating loss of US$10.9 million in FY2020. The net loss of the company was US$19.4 million in FY2021, compared to a net loss of US$10.9 million in FY2020.
For a complete picture of Ondansetron Hydrochloride’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.
