Palovarotene is a Small Molecule owned by Ipsen, and is involved in 10 clinical trials, of which 9 were completed, and 1 is ongoing.

Palovarotene (RG667) is a selective retinoic acid receptor gamma agonist. Retinoid signaling is believed to play a role in alveologenesis, with the retinoic acid receptor gamma thought to be required for alveolar formation. RG667 binds to the retinoid receptor and reduces inflammation, promotes structural repair and functional improvement. It prevents the formation of bone on a cartilage scaffold (endochondral bone formation) by two mechanisms. First, it inhibits bone morphogenetic protein (BMP) signaling by inhibiting second messenger systems. Second, they maintain retinoid signaling, thus preventing new bone formation, as endochondral bone growth cannot occur in the presence of retinoid signaling.

The revenue for Palovarotene is expected to reach a total of $2.4bn through 2038. This change impacts the valuation of this asset and is an important factor to understand the current value of the drug in a clinical process. GlobalData uses proprietary data and analytics to provide a complete picture of this assessment in their Palovarotene NPV Report.

Palovarotene was originated by F. Hoffmann-La Roche and is currently owned by Ipsen.

Palovarotene Overview

Palovarotene (Sohonos) is a member of the retinoid class of drugs that is associated with birth defects in humans. It is formulated as capsules for oral administration. Sohonos is indicated to reduce the formation of heterotopic ossification in adults and children aged 8 years and above for females and 10 years and above for males with Fibrodysplasia (myositis) Ossificans Progressiva.

Ipsen Overview

Ipsen is a global specialty biopharmaceutical company engaged in the manufacturing and distribution of drugs for the treatment of cancer, rare diseases and neurological diseases, including specialty pharmaceutical products. The company develops and commercializes novel medicines for cancer, neuroscience and rare diseases and also offers products to treat gastrointestinal disorders, neurodegenerative pathologies and rheumatic diseases. Ipsen sells its drugs through a network of distributors and directly to hospitals in a few countries. The company operates its research and development facilities in Paris-Saclay, France; Oxford, the UK; and Cambridge, the US. The company offers products in Europe, North America, Asia and rest of the world. Ipsen is headquartered in Paris, France.

The company reported revenues of (Euro) EUR2,999.1 million for the fiscal year ended December 2021 (FY2021), an increase of 11.6% over FY2020. In FY2021, the company’s operating margin was 28.4%, compared to an operating margin of 19.7% in FY2020. In FY2021, the company recorded a net margin of 21.6%, compared to a net margin of 20.4% in FY2020.

Quick View – Palovarotene

Report Segments
  • Innovator (NME)
Drug Name
  • Palovarotene
Administration Pathway
  • Ophthalmic
  • Oral
Therapeutic Areas
  • Musculoskeletal Disorders
  • Ophthalmology
  • Respiratory
Key Companies
Highest Development Stage
  • Marketed

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, potential applicable patients, drug margins, company expenses, and pricing estimates. 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 rNPV, 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.