[Edaily Reporter KIM SAE-MI ] OSCOTEC Inc. returned to profitability in the first half of this year, driven by revenue from the technology export of “Sebidoplenib” and sales of “Lecraza,” a treatment for non-small cell lung cancer.

OSCOTEC Inc.(039200)The company announced on the 14th that its consolidated revenue for the first half of this year reached 56.3 billion won, a 371.0% increase compared to the same period last year. Operating profit for the same period was 28.7 billion won, marking a turnaround from a 9.0 billion won loss in the same period last year. Net profit also reached 35.8 billion won, shifting from a 10.3 billion won loss in the first half of last year to a profit.

The improvement in performance was particularly concentrated in the second quarter of this year. OSCOTEC Inc.’s second-quarter revenue reached 52.6 billion won, a 425.6% increase compared to the same period last year. Operating profit stood at 38.7 billion won, and net profit at 40.8 billion won, both turning from a loss in the same period last year to a profit. Although the company posted an operating loss of approximately 10 billion won in the first quarter, it recorded a profit for the first half of the year as large-scale technology transfer revenue was reflected in the second quarter.

The improvement in performance was driven by revenue from new drug technology transfers. Revenue from technology transfers in the first half of the year totaled 49.8 billion won, accounting for 88.5% of total revenue. Royalty revenue amounted to 4.9 billion won, while revenue from the sale of goods was 1.5 billion won.

In particular, the technology transfer agreement for “Cevidoplenib,” a candidate drug for autoimmune diseases jointly developed by OSCOTEC Inc. and its U.S. subsidiary Genosco, contributed significantly to the company’s performance.

In June, OSCOTEC Inc. signed an agreement with U.S.-based Agios Pharmaceuticals to transfer the global development and commercialization rights for Cevidoplenib. Consequently, 34 billion won was recognized as technology transfer revenue in the first half of the year in connection with the non-refundable upfront payment of $25 million (approximately 34 billion won) received under the agreement.

Revenue related to Lecraza also increased. Milestone and royalty revenue recognized in the first half of the year for Lecraza—a non-small cell lung cancer treatment that OSCOTEC Inc. licensed to Yuhan Corporation—totaled approximately 20 billion won, a 1.9-fold increase from the approximately 10.5 billion won recorded in the first half of last year.

Amid these substantial technology transfer revenues, research and development (R&D) investment expanded. OSCOTEC Inc.’s R&D expenses recognized in the first half totaled 15 billion won, a 20.6% increase from the 12.5 billion won recorded in the same period last year.

Financial capacity also grew. As of the end of the first half, OSCOTEC Inc.’s cash and cash equivalents stood at 32.4 billion won, and short-term financial assets at 178.3 billion won, bringing total liquid assets to 210.7 billion won. This represents nearly a twofold increase from the 108.1 billion won recorded at the end of last year.

OSCOTEC Inc. plans to utilize the secured funds to continue investing in its own R&D. The company intends to continue developing its follow-on pipeline, including the Phase 1 clinical trial for OCT-598 and OCT-648, while also expanding its research workforce.

An OSCOTEC Inc. official stated, “Based on the funds and liquidity secured through recent technology transfer and commercialization achievements, we plan to proceed with the R&D of our core follow-on pipeline without any delays,” adding, “We currently have a structure in place that allows us to pursue our own R&D investments and scale expansion without the need for additional fundraising.”