Oscotec: "'Tau' Alzheimer's Treatment Expected to Capture Significant Share of 30 Trillion Won Market"

Sanofi Signs 1.5 Trillion Won Tech Transfer for 'Y01'
Targeting Tau in the Alzheimer's Market
Tau Antibody Sector Projected to Reach 30 Trillion Won by 2037

Oscotec, a new drug development company, and Adel have projected that their Alzheimer's treatment candidate, ADEL-Y01, which was licensed to Sanofi, could secure a significant share of the tau antibody market, which is estimated to reach 30 trillion won by 2037.

Yoon Taeyoung, CEO of Oscotec, stated at the technology transfer briefing held on the 18th at the Financial Investment Education Center in Yeouido, Seoul, "Although the tau antibody market does not yet exist, we expect it to be established at around 5.5 to 28 billion dollars (approximately 8 trillion to 41.3 trillion won), with a baseline estimate of about 30 trillion won by 2037." He added, "If ADEL-Y01 becomes both 'first-in-class' and 'best-in-class,' we expect it to capture a significant portion of the market."

Yoon Taeyoung, CEO of Oscotec, is speaking at the technology transfer briefing held on the 18th at the Korea Financial Investment Education Institute in Yeouido, Seoul. Photo by Jeong Donghoon

On December 16, Oscotec signed a contract with Adel to jointly license ADEL-Y01 to Sanofi for up to 1.04 billion dollars (approximately 1.53 trillion won). The deal structure includes an upfront payment of 80 million dollars (about 118.1 billion won) and milestone payments totaling 960 million dollars (about 1.4178 trillion won), with additional payments to be made in stages depending on future development and commercialization achievements. The contract was signed between Sanofi and Adel, and under the joint development agreement, Oscotec will receive 47% of the economic benefits that Adel obtains.

ADEL-Y01 selectively targets 'acetyl-tau,' a key pathological factor in Alzheimer's disease among tau proteins. CEO Yoon explained, "The concept is to use an antibody to capture the 'seed' that emerges outside the cell as tau aggregates spread along neural networks in Alzheimer's, thereby blocking its transmission to the next neuron." He emphasized, "The core reason that convinced Sanofi was experimental data showing superior inhibition by targeting the 'sweet spot' closer to the core of tau aggregation compared to competing drugs."

This deal also serves as an opportunity for Oscotec to reorganize its mid- to long-term pipeline strategy. CEO Yoon said, "The licensing out of ADEL-Y01 is a turning point for Oscotec," adding, "We have already halted direct development of two legacy pipeline projects, and we plan to license out both in some form by next summer." He continued, "Our goal is to secure candidate substances for at least two new targets within the next two to three years," and "By 2030, we aim to achieve more than three global technology transfer deals and have at least two new projects enter clinical trials."

Issues surrounding the subsidiary Genosco were also addressed during the Q&A session. CEO Yoon stated, "We are still pursuing the full integration of Genosco as a 100% subsidiary," adding, "We are intensely discussing how to leverage each other's strengths to create synergy, and we will introduce a grand plan early next year." He also agreed with the view that, "Had the deal been completed around this time last year, it would have offered advantages in this year's discussions regarding Genosco's listing," but made it clear that the plan for full integration remains unchanged.

Regarding the use of the upfront payment, Oscotec has prioritized reinvestment in research and development. CEO Yoon commented, "Our current research facility is small compared to our achievements," and added, "By strengthening our R&D capabilities, we will be able to increase both the speed and frequency of subsequent successes."