[Asia Economy Reporter Jang Hyowon] OncoQuest Pharmaceuticals (hereinafter OQP, CEO Changhyun Lee) recently announced that its existing automotive parts business is continuing as before, separate from its entry into the bio business.
OQP achieved consolidated sales of 45.9 billion KRW and operating profit of 873 million KRW in the first half of this year. However, the net loss sharply increased to 94.1 billion KRW due to a 55.6 billion KRW derivative loss from the issuance of the 8th, 9th, and 12th convertible bonds (CB) in the first half, and a 36.8 billion KRW loss from the issuance of the 8th bond. The company explained that no actual financial costs were externally incurred.
A company official stated, “The 609% debt ratio on a consolidated basis in the first half is because all CBs issued, including 76 billion KRW for acquiring intangible assets and 50 billion KRW for clinical cost financing, were recognized as liabilities,” adding, “We expect the debt ratio to significantly decrease once the CBs are converted into equity in the future.”
OQP has entered internal procedures for semi-annual review and, separately, continues preparations for the FDA global Phase 3 clinical trial. The first drug administration to the initial patient group is scheduled for the second half of this year, and clinical trials are being prepared at six hospitals domestically among 141 sites worldwide.
Additionally, the company stated that the transfer of related intangible assets is ongoing, and most asset transfers, including key patents and FDA Phase 3 sponsorship, have been completed.
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