JEIL PHARMACEUTICAL(271980) subsidiary Onconic Therapeutics(476060) said on the 12th that second-quarter operating profit was 2.7892 billion won, up 150.6% from a year earlier. Revenue for the same period rose 158.7% to 2.43993 billion won.
First-half operating profit was 7.4 billion won, up 174.1% from the same period a year earlier, and revenue rose 154.3% to 47.3 billion won.
Driving the earnings growth was Ja Q Bo, a domestically developed P-CAB class treatment for gastroesophageal reflux disease. According to pharmaceutical market research firm UBIST, Ja Q Bo's prescriptions in the first half were 46.8 billion won, up 171.6% from 17.2 billion won a year earlier. Quarterly prescriptions also increased from 21.2 billion won in the first quarter to 25.6 billion won in the second quarter.
The growth in prescriptions is continuing in the second half. Ja Q Bo's prescriptions in July were about 9.7 billion won, the highest monthly figure since the product's launch.
However, second-quarter operating profit decreased from 4.6 billion won in the first quarter. As phase 3 trials for additional indications of Ja Q Bo and development of the follow-up anticancer drug candidate "Nesuparib" moved into full swing, research and development expense was concentrated in the second quarter. Clinical trial expense can differ by quarter because disbursement timing varies depending on development stage and schedule.
It is also notable that the recent rise in prescriptions has continued. On the 7th, Ja Q Bo's prescriptions were about 9.7 billion won, the highest monthly figure since launch. This can be seen as an indicator that domestic prescriptions may expand not only in the first half but also in the second half.
However, looking at quarterly profitability, second-quarter operating profit was 2.8 billion won, down from 4.6 billion won in the first quarter. The company said the reason was that research and development expense was relatively concentrated in the second quarter as it expanded phase 3 trials for additional indications of Ja Q Bo and moved into full-scale development of the follow-up drug Nesuparib. It noted that clinical trial expense varies in timing depending on development stage and schedule, which can lead to differences in quarterly R&D expense.
Onconic Therapeutics is investing the revenue secured from Ja Q Bo's commercialization into developing follow-up drugs. Ja Q Bo currently has two approved indications—erosive gastroesophageal reflux disease and gastric ulcers—and is conducting additional phase 3 trials to expand indications to non-erosive gastroesophageal reflux disease, Helicobacter pylori eradication therapy, and maintenance therapy after treatment of erosive gastroesophageal reflux disease.
The follow-up pipeline, Nesuparib, is in phase 2 trials targeting four cancers: pancreatic, ovarian, endometrial and gastric.
Overseas business is also a key variable for future results. Ja Q Bo has entered 27 countries, including China, India and Latin America, and recently obtained marketing approval in India as a treatment for erosive gastroesophageal reflux disease. If country-by-country approvals and commercialization gain traction, additional milestone and royalty revenue from sales are also expected.
A company official said, "As entry into the global market gains traction, we expect additional milestones and royalty revenue to contribute to earnings growth," and added, "Based on Ja Q Bo's stable results, we will push forward research and development of follow-up drugs such as Nesuparib to strengthen our mid- to long-term growth foundation."