Evorpacept is a fusion protein commercialized by ALX Oncology, with a leading Phase III program in Adenocarcinoma Of The Gastroesophageal Junction. According to Globaldata, it is involved in 14 clinical trials, of which 1 was completed, 11 are ongoing, 1 is planned, and 1 was terminated. GlobalData uses proprietary data and analytics to provide a complete picture of Evorpacept’s valuation in its risk-adjusted NPV model (rNPV). Buy the model here.
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The revenue for Evorpacept is expected to reach an annual total of $179 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.
Evorpacept Overview
Evorpacept is under development for the treatment of advanced solid tumors including colorectal cancer, indolent and aggressive B-cell non-Hodgkin lymphoma, gastro-esophageal junction cancers, relapsed or refractory multiple myeloma, epithelial ovarian cancer (platinum resistant ovarian cancer), endometrial cancer, urothelial cancers, recurrent head and neck cancer squamous cell carcinoma and relapsed or refractory, non-Hodgkin lymphoma including mantle cell lymphoma, diffuse large B-cell lymphoma, follicular lymphoma, marginal zone lymphoma, metastatic gastric cancer and gastroesophageal junction (GEJ) adenocarcinoma, metastatic transitional (urothelial) tract cancer. It is administered intravenously. The drug candidate is a fusion protein containing high affinity CD47 binding domain of SIRPalpha linked to an inactive Fc region of human immunoglobulin.
It was also under development for breast cancer, leiomyosarcoma, non-small cell lung cancer, pancreatic, peritoneal, appendiceal, thymic cancers, acute myeloid leukemia, relapsed/refractory acute myeloid leukemia, higher risk myelodysplastic syndrome.
ALX Oncology Overview
ALX Oncology (ALXO) is an immune-oncology company that discovers and develops cancer and hematology drugs. It is investigating its lead product candidate evorpacept (ALX148), a CD47 blocker for the treatment of hematologic and solid tumors; and ALTA-002, a SIRPa toll-like receptor agonist antibody conjugate (TRAAC) targeting advanced cancer. The company is also evaluating its lead candidate in combination with other agents against head and neck squamous cell carcinoma, gastric, urothelial and breast cancer, myelodysplastic syndromes, acute myeloid leukemia and non-Hodgkin’s lymphoma. ALXO is headquartered in South San Francisco, California, the US.
The operating loss of the company was US$127.4 million in FY2022, compared to an operating loss of US$83.6 million in FY2021. The net loss of the company was US$123.5 million in FY2022, compared to a net loss of US$83.5 million in FY2021.
For a complete picture of Evorpacept’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.
