What is the current valuation of AN2 Therapeutics’s Epetraborole

The revenue for Epetraborole is expected to reach an annual total of $575 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.

Epetraborole Overview

Epetraborole is under development for the treatment of mycobacterium avium complex, or MAC, the most common type of NTM, mycobacterium abscessus, hepatic impairment and melioidosis. The drug candidate is administered as intravenous infusion and through oral route. It is a systemic antibiotic. It acts by targeting the bacterial enzyme leucyl tRNA synthetase. Leucyl tRNA synthetase is an alpha monomer. It is developed based on boron chemistry technology platform.

It was also under development for gram-negative bacterial infections including Enterobacteriaceae infections, Escherichia coli infections, Klebsiella pneumoniae infections and complicated urinary tract infections including acute pyelonephritis and intra-abdominal infections.

AN2 Therapeutics Overview

AN2 Therapeutics is a clinical-stage biopharmaceutical company that develops therapies for chronic, rare, and infectious diseases. The company is investigating epetraborole candidate, an oral treatment for patients with chronic non-tuberculous mycobacterial (NTM) lung disease. It is also evaluating epetraborole in treating Mycobacterium avium complex (MAC) lung disease and M. abscessus lung disease. AN2 Therapeutics drug discovery platform Boron binds on biological targets through a reversible covalent bond using traditional carbon-based molecules to discover drugs for infectious diseases. The company works in collaboration with Brii Biosciences to develop, manufacture, and commercialize epetraborole compounds in China, Hong Kong, Taiwan, and Macau. AN2 Therapeutics is headquartered in Menlo Park, California, the US.

The operating loss of the company was US$42.3 million in FY2022, compared to an operating loss of US$21.6 million in FY2021. The net loss of the company was US$41 million in FY2022, compared to a net loss of US$21.5 million in FY2021.

For a complete picture of Epetraborole’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.