Apraglutide is a synthetic peptide commercialized by Ironwood Pharmaceuticals, with a leading Phase III program in Short Bowel Syndrome. According to Globaldata, it is involved in 14 clinical trials, of which 11 were completed, 2 are ongoing, and 1 is planned. GlobalData uses proprietary data and analytics to provide a complete picture of Apraglutide’s valuation in its risk-adjusted NPV model (rNPV). Buy the model here.
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The revenue for Apraglutide is expected to reach an annual total of $169 mn by 2037 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.
Apraglutide Overview
Apraglutide (FE-203799) is under development for the treatment of short bowel syndrome intestinal failure (SBS-IF) and gastrointestinal acute graft versus host disease (GVHD). It is administered through subcutaneous route as a powder and solution for solution for injection. The drug candidate is a long acting synthetic peptide analogue of glucagon-like-peptide-2 (GLP-2) which acts on GLP-2 receptor. It is developed by using peptide technology. It was under development for the treatment of chemotherapy-induced gastro-intestinal mucositis.
Ironwood Pharmaceuticals Overview
Ironwood Pharmaceuticals (Ironwood) is a healthcare company engaged in the discovery, development, and commercialization of human therapeutics and innovative gastrointestinal product opportunities. The company’s pipeline products include linaclotide, and vascular or fibrotic programs. Ironwood offers its products under two brands- Linzess and Constella. The company generates a pipeline of early development candidates and discovery research programs in various therapeutic areas which include gastrointestinal (GI), central nervous system (CNS) and allergic disorders. The company’s portfolio includes CNP-104 and IW-3300. It has strategic partnerships with leading pharmaceutical companies such as AbbVie Inc, for the development and commercialization of linaclotide across the globe. The company operates in the US and Switzerland. Ironwood is headquartered in Boston, Massachusetts, the US.
The company reported revenues of (US Dollars) US$442.7 million for the fiscal year ended December 2023 (FY2023), an increase of 7.8% over FY2022. The operating loss of the company was US$945.4 million in FY2023, compared to an operating profit of US$250.3 million in FY2022. The net loss of the company was US$1,002.2 million in FY2023, compared to a net profit of US$175.1 million in FY2022.
The company reported revenues of US$94.4 million for the second quarter ended June 2024, an increase of 26.1% over the previous quarter.
For a complete picture of Apraglutide’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.
