[Edaily Reporter KIM JI-WAN ] #Onconic Therapeutics Inc. recorded significant increases in both revenue and operating profit in the first half of this year as prescriptions for its proprietary, approved new drug “Zacubo” expanded. As sales of the new drug begin to translate into substantial earnings, the company is also expanding its investment in broadening Zacubo’s indications and developing its follow-up anticancer drug, “Nesupalip.”

Onconic Therapeutics Inc. announced on the 12th through its semi-annual report that it recorded cumulative revenue of 47.3 billion won and operating profit of 7.4 billion won for the first half of this year. Compared to revenue of 18.6 billion won and operating profit of 2.7 billion won during the same period last year, these figures represent increases of 154.3% and 174.1%, respectively.

The growth in performance was driven by “Zacubo,” a domestically developed P-CAB-class new drug for gastroesophageal reflux disease (GERD). According to Ubist, a pharmaceutical market research firm, Zacubo’s prescription sales for the first half of this year reached 46.8 billion won, a 171.6% increase from 17.2 billion won during the same period last year. Quarterly prescription sales also rose from 21.2 billion won in the first quarter to 25.6 billion won in the second quarter.

It is also noteworthy that the upward trend in prescriptions has continued recently. In July, Jacubo’s prescription sales reached approximately 9.7 billion won, marking the highest monthly figure since its launch. This can be seen as an indicator that domestic prescription growth may continue not only in the first half but also in the second half of the year.

However, looking at quarterly profitability, operating profit for the second quarter was 2.8 billion won, down from 4.6 billion won in the first quarter. The company attributed this to a relative concentration of R&D expenses in the second quarter, driven by the full-scale expansion of Phase 3 clinical trials for additional indications of Jacubo and the development of its follow-up new drug, Nesuparip. The company explained that since the timing of clinical trial expenditures varies depending on the development stage and schedule, differences in quarterly R&D costs are to be expected.

A key point to note is that Onconic Therapeutics Inc. is establishing a structure in which revenue generated from commercialized new drugs is reinvested into subsequent research and development. Zacubo has currently secured two indications: erosive gastroesophageal reflux disease (GERD) and gastric ulcers. In addition, the company is conducting additional Phase 3 clinical trials to expand its market into non-erosive GERD, Helicobacter pylori eradication therapy, and maintenance therapy following treatment for erosive GERD.

The company is also concurrently developing Nesuparip, a new anticancer drug candidate in its follow-on pipeline. Nesuparip is currently undergoing Phase 2 clinical trials for four cancer types: pancreatic cancer, ovarian cancer, endometrial cancer, and gastric cancer. The company’s strategy is to continue R&D on follow-on new drugs based on the commercial success of Jacubo.

Another factor influencing future performance is the company’s overseas business. An Onconic Therapeutics Inc. official stated, “Zacubo is currently available in 27 countries, including China, India, and Central and South America, and recently received marketing authorization in India as a treatment for erosive gastroesophageal reflux disease.

“This demonstrates that Jacubo, a new drug developed in Korea, can lead to actual drug approvals overseas as well, making this Indian approval particularly significant,” the official stated. “As approvals and commercialization proceed in each country, there is potential to receive additional milestone payments on top of existing revenue, and once local sales begin, we can also expect royalty revenue linked to sales performance.”

Consequently, the key metrics used to evaluate Onconic Therapeutics Inc.’s performance are expected to expand beyond simply domestic Jacubo prescription revenue to include domestic prescription growth rates, overseas approvals and launches, milestone payments and royalties, and the scale of R&D investment.

An Onconic Therapeutics Inc. official said, “In the first half of this year, we continued our revenue growth trend, driven by domestic sales growth of Jacubo and milestone revenue from our overseas operations,” adding, “As our entry into the global market gains momentum, we expect additional milestone and royalty revenue to contribute to our earnings growth.” The spokesperson continued, “Building on Jacubo’s stable performance, we will accelerate the research and development of our follow-up new drug pipeline—including Nesuparip both domestically and internationally—to strengthen our foundation for mid- to long-term growth.”