What is the current valuation of Cogent Biosciences’s Bezuclastinib

The revenue for Bezuclastinib is expected to reach an annual total of $682 mn by 2035 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.

Bezuclastinib Overview

Bezuclastinib (CGT-9486) is under development for gastrointestinal stromal tumor, advanced systemic mastocytosis (ASM), indolent systemic mastocytosis (ISM) and mast cell leukemia. It is a small molecule administered through oral route in the form of the tablet. The drug candidate acts by targeting KIT activation loop mutation exon 17 D816V. It is developed based on the scaffold-based drug discovery platform.

It was under development for the treatment of solid tumors including gastrointestinal stromal tumor.

Cogent Biosciences Overview

Cogent Biosciences formerly, Unum Therapeutics is a clinical-stage biopharmaceutical company that develops and commercializes precision therapies for genetically defined diseases. The company’s pipeline product portfolio includes CGT9486 which is a selective tyrosine kinase inhibitor designed to potently inhibit the KIT D816V mutation as well as other mutations in KIT exon 17. In the vast majority of cases, KIT D816V is responsible for driving Systemic Mastocytosis, a serious disease caused by the unchecked proliferation of mast cells. It carries out clinical trials such as Apex, Summit and Peak. Cogent Biosciences is headquartered in Cambridge, Massachusetts, the US.

The operating loss of the company was US$148.2 million in FY2022, compared to an operating loss of US$75.6 million in FY2021. The net loss of the company was US$140.2 million in FY2022, compared to a net loss of US$72.3 million in FY2021.

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

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.