Onconic Therapeutics to Receive $5 Million Major Technology Transfer Fee

Entering the New Drug Approval Stage in China
Additional Revenue Expected Upon Future Regulatory Approval

Onconic Therapeutics will once again receive a technology transfer fee of $5 million (approximately 7 billion KRW) from its Chinese partner.

On August 19, Onconic Therapeutics announced through a public disclosure that it has invoiced a $5 million development milestone payment to Livzon Pharmaceutical of China. This follows Livzon’s successful completion of phase 3 clinical trials in China for the gastroesophageal reflux disease (GERD) treatment 'Zastaprazan' and the submission of a new drug application (NDA) to the National Medical Products Administration (NMPA) of China.

This milestone payment is the largest single development milestone Onconic Therapeutics has received in its global expansion efforts. While it is common for initial technology transfer fees to be paid in new drug licensing agreements, it is rare for a major milestone to be triggered at the NDA stage, making this achievement particularly significant.

Onconic Therapeutics, which was listed on KOSDAQ last year, had already secured a $15 million (approximately 20 billion KRW) upfront payment in March 2023, prior to its listing, by signing a technology transfer agreement with Livzon for the Greater China region. Since its listing, the company has received a $3 million (approximately 4.4 billion KRW) milestone for entering phase 3 clinical trials this year, as well as a $1.5 million (approximately 2.2 billion KRW) milestone for the completion of manufacturing technology transfer. Industry experts believe that Onconic Therapeutics is highly likely to receive an additional 'approval milestone' upon regulatory approval in China.

China is considered the world's largest market for GERD treatments. According to global market research firm IQVIA, the global GERD treatment market is estimated to be worth about 40 trillion KRW this year. Of this, the Chinese market is valued at between 4 trillion and 6 trillion KRW, making it the largest single market globally. In particular, the P-CAB market has been experiencing rapid growth, recording an annual growth rate of 81% last year, reaching a size of 241.4 billion KRW.

A representative from Onconic Therapeutics stated, "Completing phase 3 clinical trials in the world's largest market, China, in a short period and quickly proceeding to the regulatory application stage is a major turning point in our global expansion." The representative added, "With this major milestone secured, our overseas revenue base has been further strengthened, and we will accelerate commercialization in other key markets such as India, Mexico, and South America."

Currently, Onconic Therapeutics has signed overseas technology transfer and distribution agreements for Zastaprazan in a total of 26 countries, including China, and is continuing to expand its global market presence in India, Mexico, 19 countries in South America, and 5 countries in Northern Europe.

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