[Interview] Lee Changhyun, CEO of OQP: "Ovarian Cancer Drug Efficacy Three Times That of Existing Drugs... Expecting Phase 3 Clinical Trials in the US"

[Asia Economy Reporter Jang Hyowon] “Ongkoquest Pharmaceuticals (OQP)’s ovarian cancer new drug ‘Oregovomab’ has shown more than three times the effectiveness compared to existing drugs in Phase 2 clinical trials. This is why we expect to pass the U.S. Food and Drug Administration (FDA) Phase 3 trial.”

Lee Chang-hyun, CEO of OncoQuest Pharmaceuticals (OQP).

At a meeting with Asia Economy on the 19th, Lee Changhyun, CEO of OQP, expressed confidence while explaining the company’s pipeline.

Duol Industry, a company specializing in automotive interior and exterior parts, changed its name to OQP on the 22nd of last month and officially started its bio business. While the existing business continues to generate steady operating profits, bio was chosen as a new growth engine. Ongkoquest is a Canada-based pharmaceutical company developing new drugs.

Since the business fields are different, CEO Lee said that a rigorous verification process was conducted before investing in the bio business. The value of Ongkoquest’s pipeline, intellectual property (IP), and patent evaluations were verified through law firms and accounting firms. The due diligence process, including a direct visit to the Canadian headquarters, took about six months.

The investment structure is also unique. Unlike other listed companies that blindly acquire shares of bio companies, OQP purchased intangible assets owned by Ongkoquest. In return, Ongkoquest received new shares from Duol Industry’s paid-in capital increase and convertible bonds (CB). Rather than acquiring shares of a bio company, the headquarters itself became a bio company. This structure allows the company to fully enjoy the benefits of new drug clinical outcomes.

OQP holds a new drug pipeline applicable to ovarian cancer, pancreatic cancer, and metastatic breast cancer. The new drug with the highest expectations currently is the ovarian cancer immunotherapy ‘Oregovomab.’ Oregovomab has contracted with IQVIA, the world’s number one contract research organization (CRO), and is recruiting Phase 3 clinical trial patients at 140 hospitals across 18 countries worldwide. The first patient dosing is expected in early August.

CEO Lee explained, “The Phase 2 clinical trial where Oregovomab was administered alone did not show significant effects. However, when the Phase 2 trial was redone in combination with existing treatments, progression-free survival (PFS) increased to 41.8 months, which is 242% longer compared to 12.2 months with existing therapies.” He added, “Typically, U.S. Phase 3 trials pass if the drug shows more than 50% effectiveness compared to existing drugs, so expectations for Oregovomab are high.”

The global market size for Oregovomab is estimated at 24 trillion KRW. It is calculated to be applicable not only to new ovarian cancer patients but also to second- and third-line recurrent patients.

CEO Lee is considering licensing out (L/O) or selling the entire pipeline depending on the clinical stage. When interim results of Phase 3 come out around 2022, discussions with global pharmaceutical companies are planned.

He explained that clinical trial costs have already been secured. CEO Lee said, “We have secured a total of 70 billion KRW, including 20 billion KRW of existing reserved funds and 50 billion KRW raised through CB issuance. Since bio business funding can be difficult, and clinical trials may stop if funding is not smooth, we have gathered enough funds to complete the trials.”

He said, “The original researchers, including Dr. Madi Madiyalakan who first developed Oregovomab and Dr. Jonathan Berick, an authority on gynecologic cancers, have joined OQP’s management team. Our goal is to manage so that they can complete the clinical trials and research.” He added, “While stably operating the existing automotive business, we will raise corporate value through the bio business.”

This content was produced with the assistance of AI translation services.