V-116 is a conjugate vaccine commercialized by Merck, with a leading Phase III program in Streptococcal Pneumonia. According to Globaldata, it is involved in 10 clinical trials, of which 2 were completed, 7 are ongoing, and 1 is planned. GlobalData uses proprietary data and analytics to provide a complete picture of V-116’s valuation in its risk-adjusted NPV model (rNPV). Buy the model here.

The revenue for V-116 is expected to reach an annual total of $16 mn by 2038 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.

V-116 Overview

Vaccine is under development for the prevention of Streptococcus pneumoniae infections. The drug candidate is a conjugate vaccine. Sterile 0.5 mL solution in prefilled syringe containing 4 μg of each PnPs antigen (3, 6A, 7F, 8, 9N, 10A, 11A, 12F, 15A, 15C, 16F, 17F, 19A, 20, 22F, 23A, 23B, 24F, 31, 33F, and 35B) given by intramuscular (IM) injection.

Merck Overview

Merck is a biopharmaceutical company focused on the discovery, development, manufacturing and marketing of prescription medicines, biologic therapies, vaccines and animal health products. It offers prescription products for therapy areas related to cardiovascular, cancer, immune disorders, infectious, respiratory and women’s diseases, and diabetes. The company provides animal health products such as vaccines, poultry products, livestock products and aquaculture products. Merck sells medicines to drug wholesalers, retailers, hospitals, government agencies and managed health care providers; and animal health products to veterinarians, distributors and animal producers. The company and its subsidiaries operate in the Americas, Europe, the Middle East, Africa, Asia Pacific, and Latin America. Merck is known as MSD outside the US and Canada and is headquartered in Kenilworth, New Jersey, the US.

The company reported revenues of (US Dollars) US$59,283 million for the fiscal year ended December 2022 (FY2022), an increase of 21.7% over FY2021. The operating profit of the company was US$18,152 million in FY2022, compared to an operating profit of US$12,538 million in FY2021. The net profit of the company was US$14,519 million in FY2022, compared to a net profit of US$13,049 million in FY2021.

For a complete picture of V-116’s valuation, buy the drug’s risk-adjusted NPV model (rNPV) here.

GlobalData

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.