Onconic Therapeutics said it has filed a milestone payment claim with its Chinese partner, Livzon Pharmaceutical Group, for Jaqbo (ingredient: zastaprazan), its gastroesophageal reflux disease (GERD) treatment.

According to the regulatory filing, Onconic recently completed the transfer of the chemistry, manufacturing, and control (CMC) technology to Livzon, prompting a claim for an additional $1.5 million in milestone payments. This follows the $3 million milestone payment received last month.

The company emphasized that the steady progress of Jaqbo's development in China has led to timely milestone payments.

Onconic previously signed a licensing agreement with Livzon, which granted the latter exclusive rights for the development, approval, manufacturing, and commercialization of zastaprazan in the Greater China region, including mainland China, Taiwan, Hong Kong, and Macau, in March 2023. The deal is valued at up to $127.5 million, including an upfront payment of $15 million.

The licensing deal with Livzon, signed before Onconic’s listing, has now progressed to the phase 3 clinical stage in China, further raising expectations for regulatory approval and market launch.

Zastaprazan was designated as Korea’s 37th new drug in April 2024 and launched in October under the brand name Jaqbo. In January 2025, Onconic completed a successful phase 3 trial for the additional indication of gastric ulcer treatment and submitted an application for expanded approval.

The company posted 14.8 billion won in revenue in 2024, with cumulative sales of Jaqbo reaching 35 billion won over two years.

“Zastaprazan continues to prove its value as a new drug in both Korean and overseas markets,” an Onconic Therapeutics official said. “With ongoing clinical development and licensing milestones, we are accelerating our global expansion strategy.”

Collaboration with Livzon is progressing smoothly, and the company anticipates substantial future revenue and royalty income as a result, the official added.