OQP Begins Semiannual Review Process... "Opportunity to Prove New Drug Value"

[Asia Economy Reporter Jang Hyowon] OncoQuest Pharmaceuticals (hereinafter OQP, CEO Changhyun Lee), which received a refusal of review opinion on its semi-annual report, has started the re-examination process of the semi-annual report.

According to OQP on the 20th, OQP requested the auditor to re-examine the semi-annual report. The auditor is known to have requested the necessary preparatory materials for the re-examination from OQP.

The main reason for this refusal of opinion is the appropriateness of the standards regarding the valuation method and accounting treatment of intangible assets such as anticancer drug development technology, patents, and clinical research pipelines acquired by OQP.

According to OQP, this intangible asset acquisition transaction is the first case in Korea where a domestic listed company acquires all intangible assets including new drug development pipelines at global clinical phase 3 stage including clinical and non-clinical phases, patent rights, and clinical trial hosting qualifications from an overseas company.

Therefore, to re-evaluate the value of intangible assets, OQP plans to select one accounting firm with bio experts, including the Big Four accounting firms in Korea, to request a re-evaluation, and will also request evaluation and accounting treatment standards from an accredited institution. Additionally, OQP plans to recruit a professional PA (Private Accounting) to proceed with the valuation and re-examination report.

An OQP official stated, “When we requested a valuation to sign the intangible asset acquisition contract with Canada’s ‘OncoQuest’ last December, most domestic accounting firms were unable to properly evaluate the value of bio-related intangible assets due to adverse events that occurred at major domestic bio companies such as Samsung Biologics, Hanmi Pharm, and Kolon TissueGene, so we had a hard time conducting the valuation.”

He added, “This re-examination could be an opportunity to properly prove the value of intangible assets acquired by OQP to the auditor and all investors,” and “We will also prepare without disruption for the global phase 3 clinical trial of the ovarian cancer immuno-oncology drug ‘Oregobomab.’”

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