Onconic Therapeutics announced on the 24th that it has billed its Chinese partner, Livzon Pharmaceutical, for the technology transfer milestone of the gastroesophageal reflux disease treatment 'Jastafrazen (product name Jacubo).'
According to this announcement, Onconic Therapeutics received $3 million (43.74 billion won) in royalties (milestones) from Livzon last month and has now completed the transfer of manufacturing technology (CMC) for production, additionally billing $1.5 million (21.87 billion won).
Previously, Onconic signed a technology transfer agreement with Livzon on March 10, 2023, granting exclusive rights for the development, approval, production, and commercialization of Jastafrazen in the Greater China region (China, Taiwan, Hong Kong, Macau). The contract size totals $127.5 million (165 billion won), including a down payment of $15 million (20 billion won). Following this, Onconic has pursued global expansion into 21 countries by entering additional technology transfer agreements with India and Mexico/South America. Of these, the agreement signed with China in 2023 is the most advanced stage.
Jastafrazen was approved as the 37th domestic new drug in April last year, and sales officially began in October under the product name Jacubo. This January, it expanded its target diseases by including gastric ulcer, completed phase 3 clinical trials, and submitted a permit application to the Ministry of Food and Drug Safety.
Among the 38 drugs approved as new drugs in the country to date, there are few cases where revenue has actually grown or where the drug has entered phase 3 clinical trials abroad. However, potassium-competitive acid pump inhibitor (P-CAB) class new drugs are the first differentiated new drug group in the country to exceed annual sales of 100 billion won. Onconic's Jacubo continues to achieve success in both domestic and international markets.
Onconic reported revenue of 14.8 billion won last year, achieving cumulative sales of 35 billion won over two years since the launch of Jacubo. The company expects substantial growth in domestic new drug sales based on this year's first annual results. A company official noted, "Jastafrazen is proving its value as a new drug domestically and internationally, and we plan to accelerate global market expansion through continuous technology transfer achievements and clinical development," adding, "Collaboration with China's Livzon is also progressing smoothly, and we anticipate significant future revenue and royalty income."