OliX is building expectations for additional milestone payments based on its collaboration with Eli Lilly to develop a treatment for metabolic dysfunction-associated steatohepatitis (MASH), according to an analysis. With its obesity treatment and ophthalmology and hair-loss pipelines also set to release major data within the year, the possibility of a re-evaluation of the company's value has been raised.
Hong Ga-hye, a researcher at Daishin Securities, said in a report Monday that "based on the liver-targeting siRNA platform validated through its partnership with Lilly, the company is fully expanding its business into extra-hepatic indications such as obesity, the central nervous system (CNS), and skin and hair."
The most closely watched pipeline is "OLX702A," a MASH treatment candidate licensed to Lilly. In February last year, OliX signed a technology transfer agreement with Lilly worth a total of $630 million (about 911.6 billion won). OLX702A is an siRNA therapeutic targeting MARC1, and in patients with non-alcoholic fatty liver disease (NAFLD), it confirmed a liver fat reduction effect averaging 60 to 80 percent and reaching up to 90 percent.
Hong said, "We expect to receive a clinical study report (CSR) after the completion of the Phase 1 multiple ascending dose (MAD) trial," predicting that "milestone payments will then be possible alongside entry into a Phase 2 trial." She added, "Since Lilly holds priority rights to a dual-target program combining MARC1 with another target, the possibility of an additional technology transfer also exists."
Expectations are also high for the obesity treatment candidate "OLX501A." An ALK7 siRNA therapeutic targeting adipose tissue, it confirmed an effect of reducing target mRNA expression by up to 84 percent in primate experiments. In addition, when administered in combination with Lilly's obesity treatment "Zepbound," it maintained a body fat reduction effect even at a dose one-tenth of that of high-dose monotherapy, and was also found to ease the weight rebound phenomenon after discontinuation of treatment.
Hong explained, "Given the high level of interest from global pharmaceutical companies in the obesity treatment market, the company is pursuing a technology transfer before entering clinical trials," adding, "It has currently secured preclinical data for a candidate that has completed material optimization, and detailed results will be released at the R&D Day on the 14th of next month."
The expansion of cooperation with L'Oréal was also evaluated as a positive factor. Following a joint research agreement with L'Oréal on skin and hair regeneration last year, OliX recently carried out a paid-in capital increase worth 110 billion won. In this process, BOLD, L'Oréal's corporate venture capital (CVC) arm, made a strategic investment worth 10 billion won.
Hong forecast, "Currently, the development of multiple indications is underway in the cosmetics and pharmaceutical fields," and "if monetization structures such as royalties and sales rights become concrete in the future, it will act positively on the rise in corporate value."
In addition, the macular degeneration treatment "OLX301A" confirmed the possibility of vision improvement in a U.S. Phase 1 trial, and the company plans to pursue entry into a global Phase 2 trial and a technology transfer in parallel in the second half. The hair-loss treatment "OLX104C" is undergoing Phase 1b and 2a trials in Australia, with entry into the Phase 2a trial expected in the second half after the completion of the Phase 1b trial in July and August. In the CNS field, the company is conducting research to convert the intrathecal administration method into a systemic administration method using blood-brain barrier (BBB) penetration technology, and plans to secure animal efficacy data within the year.
