[Click eStock] "Oscotec, First Korean Anticancer Drug Approved for Sale in the US"

Daishin Securities analyzed on the 21st that Oscotec will receive a milestone payment after obtaining the first U.S. marketing approval for a domestically developed anticancer drug.

Yuhan Corporation's non-small cell lung cancer treatment 'Leclaza' (active ingredient Lazertinib) and multinational pharmaceutical company Johnson & Johnson's (J&J) 'Rybrevant' have received approval from the U.S. Food and Drug Administration (FDA) as the standard treatment (first-line therapy) for patients with epidermal growth factor receptor (EGFR) mutation-positive non-small cell lung cancer.

Lee Hee-young, a researcher at Daishin Securities, explained, "According to the technology transfer agreement, Oscotec and Genosco, the original developers of Lazertinib, will receive 40% of the milestone payments that Yuhan Corporation receives from Janssen, split 50:50."

He added, "The revenue recognition is expected to occur in the quarter following Yuhan Corporation's receipt," and "milestone payments for running royalties are expected next year."

He emphasized, "FDA approval is a monumental case as the first domestically developed anticancer drug to receive U.S. marketing authorization," and "it will serve as a strong global track record for Oscotec."

The researcher analyzed, "We expect the strengthening of the new drug pipeline in the future based on the launch of a K-blockbuster anticancer drug targeting an 8 trillion KRW market and the continuous cash flow generated from it." He also stated, "Additionally, if Mariposa (MARIPOSA) shows an improvement in overall survival (OS) compared to the competing drug Tagrisso, there is a valid possibility of an increase in corporate value due to higher market penetration."

He forecasted, "The possibility of FDA and EMA approval applications for Lazertinib monotherapy is also valid," and "the launch countries will expand next year to include Europe, China, Japan, and others."