[Special Stock] FutureChem's Commercial Value Rises for US No.1 Male Cancer Prostate Cancer Treatment... Expected Benefit from 'Cancer Moonshot'

FutureChem is showing strong performance. A securities firm's analysis report suggesting significant potential for global business development of the prostate cancer treatment (FC705) appears to be influencing the stock price. Kyobo Securities noted the high possibility of expansion into Asian markets, including China, and stated that FC705's patent registration in China is scheduled for April this year. They predicted that if IP acquisition is successful, the pace of business progress will accelerate. Considering that selling both diagnostic and therapeutic agents simultaneously maximizes the commercial success of prostate cancer-related pharmaceuticals, they cited cases of large-scale investments and expected the scale of FC705's technology transfer contracts to be significant.

The U.S. Department of Health and Human Services (HHS) unveiled a detailed draft plan for the Biden administration's cancer conquest project, 'Cancer Moonshot,' on the 3rd (local time), which is also interpreted as increasing interest in cancer treatment developers. Cancer Moonshot is a policy goal announced by the U.S. government to reduce the cancer mortality rate among Americans by 50% within the next 25 years. Prostate cancer ranks first among male cancers in the West.

As of 9:30 a.m. on the 6th, FutureChem is trading at 8,300 KRW, up 10.52% from the previous day.

Researcher Kim Jeong-hyun of Kyobo Securities analyzed, "FutureChem's corporate value will be determined by the clinical progress and business development outcomes of the prostate cancer treatment (FC705) and diagnostic agent (FC303)."

He added, "The prostate cancer treatment FC705 is a radiopharmaceutical (RLT) targeting the prostate-specific membrane antigen PSMA," and introduced, "The components of FC705 include the PSMA antigen binding site, the therapeutic radioisotope lutetium (Lu-177), and the chelator and linker that bind to it."

He emphasized, "What distinguishes FC705 from competing PSMA-targeted RLTs is FutureChem's albumin binder, which binds to albumin in the body to extend the half-life, allowing superior therapeutic effects even with a small dose."

Researcher Kim stated, "The radiopharmaceutical market is expected to grow rapidly," explaining, "The innovative drug Pluvicto_ by Novartis demonstrated high clinical efficacy in Phase 3." He continued, "No additional safety issues appeared in the 3-year follow-up results of Phase 2," and emphasized, "The explosive demand for Pluvicto is also evident in sales, with fourth-quarter sales last year reaching $180 million." He added, "The previous maximum sales expectation of $2 billion is considered very conservative."

Researcher Kim explained, "Although FC705 is a latecomer in the RLT prostate cancer treatment market, commercial opportunities still remain," and stated, "FC705 demonstrated clinical efficacy potential similar to or exceeding Pluvicto through Phase 1 trials in Korea."

He introduced, "The multi-dose Phase 2 trial is currently progressing smoothly," and described, "FC705 maximizes in vivo half-life and tumor-specific response through the albumin binder while significantly reducing the amount of lutetium administered." Additionally, "Lutetium has a half-life of only 6.7 days, decreasing by about 10% daily as a radioactive isotope," and "The price of lutetium is over 20,000 KRW per 1 mCi, and producing 100 mCi of lutetium drug requires more than three times that amount of lutetium, making production costs relatively high," he added.

Researcher Kim analyzed, "For reference, Pluvicto requires a lutetium dose of 200 mCi per administration, so arithmetically, 600 mCi of lutetium is needed to produce one treatment dose," and noted, "Pluvicto faces challenges in mass production and long-distance shipping." Novartis temporarily halted production at facilities in Italy and the U.S. in May last year due to potential quality issues, indicating the difficulty of production.

He emphasized, "The RLT market cannot support mass production, and the production process is not easy, necessitating local production sites," and added, "Production costs are significantly higher compared to biologics like antibodies or small molecules." He continued, "Considering the characteristics of the RLT market, if FC705 secures local partners in each country and captures the market, it can expect meaningful commercial success along with cost competitiveness."

Researcher Kim explained, "Nasdaq-listed Lantheus signed a joint development agreement for PNT2002 (PSMA-I&T) with Point Biopharma on November 14 last year," and described, "The contract includes a signing bonus of $250 million, development milestones up to $250 million, and commercial milestones up to $1.3 billion, totaling $1.8 billion."

He stated, "The sales royalty is a large contract amounting to 20% of net sales," and added, "FutureChem also possesses both the therapeutic agent FC705 and diagnostic agent FC303, and from FutureChem's partner perspective, simultaneous development could maximize commercial effects."

According to the 'Korean Society of Clinical Oncology Guidelines for Metastatic Prostate Cancer Treatment,' prostate cancer ranks second globally among cancers occurring in men and is ranked fourth domestically. Market research firm Global View Research estimated the prostate cancer treatment market at $10.6 billion in 2021, expected to grow to $21.5 billion (28 trillion KRW) by around 2030.