Onconic Therapeutics passes preliminary Kosdaq IPO review

Onconic Therapeutics, a subsidiary of Jeil Pharmaceutical, has passed the preliminary examination for its listing on the Kosdaq, clearing the way for a potential initial public offering (IPO) later this year.  The company recently launched Jaqbo (zastaprazan), a potassium-competitive acid blocker (P-CAB), entering Korea’s peptic ulcer drug market.

The announcement made on Friday revealed that the Kosdaq market listing committee of the Korea Exchange approved Onconic's preliminary review application. With this approval, the company will proceed with the IPO process, with NH Investment & Securities serving as the lead underwriter.

Onconic Therapeutics said that, if the company successfully debuts on Kosdaq, it would mark a significant milestone as the first technology-specialized company to achieve a listing with actual sales of a new drug post-approval.

Established in May 2020 as a subsidiary of Jeil Pharmaceutical, Onconic Therapeutics received approval from the Ministry of Food and Drug Safety in April for Jaqbo, which was developed through independent research and development efforts.

Jaqbo began sales on Oct. 1 and is projected to be a strong contender in the market, with domestic distribution managed by two of Korea's largest pharmaceutical firms, Jeil  Pharmaceutical and Dong-A ST.

Onconic Therapeutics is expanding the global reach of its new drug, Jaqbo, having signed a technology export agreement with the Chinese pharmaceutical firm Livzon Pharmaceutical Group last year, valued at $127.5 million, which includes a down payment of approximately $15 million. In May, the company entered into a technology transfer agreement with a major pharmaceutical firm in India, although it declined to disclose the partner's name for confidentiality reasons. In September, Onconic secured technology export agreements with 19 countries in Latin America, including Mexico, Argentina, Chile, and Colombia, bringing its total to 21 countries worldwide.

The company is actively pursuing additional technology export contracts, which it believes will enhance the potential for Jaqbo to become a global blockbuster drug. Onconic Therapeutics said that these agreements position it for continued growth, enabling a cycle of reinvesting sales revenues from both domestic and international markets into research and development for future new drugs.

Unlike traditional pharmaceutical and biotech companies that rely on large domestic and international partners for late-stage development, Onconic Therapeutics has positioned itself as a pioneer in the industry by independently securing a new drug license and achieving a special technology listing through the development of Jaqbo.

In addition to Jaqbo, Onconic Therapeutics is developing Nesuparibb(JPI-547·OCN-201), a dual inhibitor targeting poly (ADP-ribose) polymerase (PARP) and tankyrase. The company is also working on several next-generation synthetic cancer drug candidates.

“We aim to establish ourselves as a capable new drug company that can successfully license and commercialize new products and export technology to 21 overseas countries,” said a representative from Onconic Therapeutics. “We are committed to becoming a global new drug company through a virtuous cycle of R&D investment based on our profits."