Onconic Therapeutics posted triple-digit revenue growth in the first quarter, driven by the rapid sales expansion of Jaqbo, Korea's 37th domestically developed new drug. Industry observers say the company has built a stable cash-generating structure based on the commercialization of its proprietary drug, a notable achievement in Korea's biotech sector, where many firms rely heavily on technology licensing revenue.
Onconic Therapeutics reported first-quarter revenue of 22.98 billion won, operating profit of 4.59 billion won, and net profit of 6.42 billion won, the company said in a regulatory filing Tuesday. Revenue surged 151% from a year earlier.
Jaqbo, a treatment for gastroesophageal reflux disease (GERD), led the earnings growth. Developed in-house by Onconic Therapeutics, Jaqbo is a P-CAB class GERD drug approved as Korea's 37th domestically developed new drug. Excluding technology licensing revenue, Jaqbo sales rose 229% year-on-year. The growth momentum also continued from the previous quarter, with first-quarter sales climbing about 48% from 15.58 billion won in the fourth quarter of last year.
Notably, Jaqbo recorded 21.2 billion won in outpatient prescription sales in the first quarter, surpassing the 20 billion won mark for the first time just six quarters after launch. The company said Jaqbo has outpaced global blockbuster treatments in the Korean prescription drug market, climbing 93 notches in about a year to the 19th spot in prescription rankings. The company added that the drug sustained high growth from the previous quarter even during the first quarter, typically considered a low season at the start of the year.
Onconic Therapeutics has provided full-year revenue guidance of 111.8 billion won. The company said the likelihood of meeting the target is rising, given the expanding prescription volume of Jaqbo and the potential for additional technology licensing milestones.
The market is also paying attention to Onconic Therapeutics' business model of channeling new drug sales revenue into follow-up pipeline investments. Unlike typical biotechs that depend on technology export upfront payments or external funding, Onconic Therapeutics is generating recurring revenue and operating profit from its in-house commercialized drug.
The company is reinvesting the cash generated from Jaqbo into the development of Nesuparib, a next-generation dual-target synthetic lethality anticancer drug. Nesuparib is currently in Phase 2 clinical trials across four indications: pancreatic cancer, endometrial cancer, gastric cancer, and ovarian cancer. It has also been granted orphan drug designation by the U.S. Food and Drug Administration (FDA).
"Based on the cash-generating capability secured through Jaqbo, we will focus on the research and development of follow-up new drugs such as Nesuparib and strengthen our 'money-making biotech' growth model," an Onconic Therapeutics official said.
