Oscotec's (039200.KQ) future stock performance depends on increased royalty revenue from lazertinib and resolution of the Genosco subsidiary issue, according to a securities analyst.
Jung Hee-ryung, a researcher at Kyobo Securities, noted on the 17th that "Oscotec signed a technology transfer agreement worth $1.04 billion with Sanofi for ADEL-Y01, a novel Alzheimer's treatment targeting acetylated tau beta, which is being co-developed with Adel under the pipeline designation ACK280."
"Due to the joint development with Adel, Oscotec expects to receive 55 billion won from the total upfront payment," Jung said. "The ADEL-Y01 technology transfer is the second licensing deal with a global big pharma following the commercialization of lazertinib, reaffirming Oscotec's R&D capabilities."
Jung added that "as all rights will be transferred to Sanofi, the clinical direction and timeline remain undetermined, but we expect expedited entry to secure patient data." She projected that "with the anticipated ADEL-Y01 global deal now concluded, the stock's future trajectory will be determined by increased lazertinib royalty revenue and resolution of the Genosco 100% subsidiary issue."
Regarding lazertinib, Jung noted that "in November, lazertinib was upgraded from a recommended regimen to a preferred regimen in the NCCN guidelines." She added that "the remaining condition for market share growth is FDA approval of the subcutaneous formulation of amivantamab. While the PDUFA date has not been confirmed, we expect approval within the fourth quarter of this year."
Jung also stated that "Oscotec plans to focus on OCT-598, a drug that blocks resistance in cancer treatments, and OCT-648 for fibrosis indications." She evaluated that "OCT-648 is currently in the preclinical stage, still at an early phase, but with the potential of the NUAK1 target confirmed, preclinical results are expected to be presented at academic conferences, raising expectations for the next main pipeline."
