Onconic Therapeutics, a new drug development subsidiary of JEIL PHARMACEUTICAL, announced on the 19th that it expects to receive $5 million (approximately 700 million won) in development milestones from Chinese Livzon Pharmaceutical.
The company explained that this is the largest single milestone among its historical development milestones.
Onconic Therapeutics signed a transfer agreement granting Livzon, the leading gastrointestinal treatment corporation in China, exclusive rights to the gastroesophageal reflux disease treatment "Ja Q Bo" (domestic product name: Ja Q Bo) in the Chinese market in April 2023.
After completing the clinical phase 3 in China, an application for product approval was submitted to the National Medical Products Administration (NMPA) of China in August of this year. Accordingly, JEIL PHARMACEUTICAL billed Livzon for development milestones.
Previously, Onconic Therapeutics received a transfer fee of $15 million from Livzon. It also received $3 million upon the completion of phase 3 trials and an additional $1.5 million upon the completion of production technology transfer. If approval is granted in the future in China, additional approval milestones are expected.
A company official said, "Completing the clinical phase 3 in a short period in the world's largest market, China, and swiftly moving to the approval application is an important turning point for global expansion," adding, "With this large milestone secured, the revenue base from overseas has been strengthened, and we will increase the commercialization pace in other major markets such as India, Mexico, and South America."