Onconic Therapeutics Signs Technology Export Deal for P-CAB New Drug with China Worth 160 Billion KRW

Onconic Therapeutics announced on the 10th that it has signed a technology export contract worth a total of $127.5 million (approximately 160 billion KRW) with Chinese pharmaceutical company Livezone Pharmaceutical Group for the development and commercialization of the gastroesophageal reflux disease treatment drug 'Jastaprazan.'

Under this technology export agreement, Onconic will first receive a non-refundable signing fee of $15 million (approximately 20 billion KRW). Additionally, it can receive up to $112.5 million (approximately 145 billion KRW) in milestone payments for development, approval, and commercialization stages. There is no obligation to return the signing fee or milestone payments once received. Furthermore, royalties based on sales after commercialization will be paid additionally.

Livezone, headquartered in Zhuhai City, Guangdong Province, China, is a comprehensive pharmaceutical company covering research and development, manufacturing, and sales. As of 2021, it recorded sales of $1.88 billion (approximately 2.4 trillion KRW) in China. In the gastroesophageal reflux disease field, it generates annual sales exceeding $450 million (approximately 600 billion KRW).

According to the contract, Livezone will secure exclusive rights for the development, approval, production, and post-launch commercialization of Jastaprazan not only in China but also in Taiwan, Hong Kong, and Macau.

Jastaprazan is a next-generation potassium-competitive acid blocker (P-CAB) drug candidate expected to replace existing proton pump inhibitors (PPIs) in the gastroesophageal reflux disease and peptic ulcer treatment market. Unlike PPI drugs, P-CAB formulations bind directly to potassium ions without needing activation by stomach acid. The mechanism blocks acid secretion by interfering with the binding of proton pumps and potassium ions. It can be taken regardless of meals and has a longer duration of efficacy compared to existing treatments.

Jastaprazan was selected as a new drug development support project under the Ministry of Health and Welfare's advanced medical technology development program in 2017 and received about 2 billion KRW in research funding. Onconic, which started Phase 3 clinical trials for reflux esophagitis in Korea in January last year, is accelerating efforts to complete the trials this year. Domestic launch is targeted for 2024. The indication is also being expanded to peptic ulcer treatment; in June last year, Phase 3 clinical trials for peptic ulcer patients were approved by the Ministry of Food and Drug Safety and are currently underway.

Kim Jon, CEO of Onconic, said, "We are very pleased to confirm the potential of Jastaprazan as a global new drug through this technology export. We hope that through cooperation between the two companies, commercialization in the Chinese market will be expedited, providing new treatment opportunities to many patients suffering from related diseases."

Tang Yanggang, CEO of Livezone, said, "This partnership with Onconic will maximize each other's strengths and jointly accelerate the development and commercialization of Jastaprazan in the Greater China region. This collaboration will further strengthen Livezone's gastrointestinal pipeline."