New Metrics needed for Celldex Drug Product Valuation
Rindopepimut may eventually be the treatment of choice for a percentage of patients with tumors with high expression of EGFRvIII. Current metrics used in valuation of oncology drug products measure the percentage of patients treated, (and dollars generated), for one particular type of cancer. Rindo will probably become the treatment of choice for a percentage of several different types of cancers.
Other Celldex products will exhibit this type of treatment success and will capture marketshare of a percentage of various types of cancers. Market share of a single cancer type will no longer be the only measure of oncology drug product valuation. The future of oncology will include highly specific therapeutics that cover various cancers that cannot be measured by current metrics.
Celldex is right in the middle of this new breed of highly selective and specific therapy and valuations will be expressed as the cumulative percentages and numbers of disease states treated by one particular drug product.
And the increase in percentage of success. The current valuation models are geared for "shots on goal" and historical percentages of success. Historically, drugs with any and sometimes no signs of efficacy were pushed through the pipeline.
Targeted immunotherapies, just be the name itself, applies a completely different model....which requires a different valuation algorithmn.