Onconic Therapeutics expands development of cancer and obesity drugs using Zacubo revenue

[Financial News] An analysis said that Onconic Therapeutics is expanding development of cancer and obesity treatments, funded by revenue from sales of its internally developed new drug, Zacubo.
Value Finder researcher Jihoo said in a company-visit report on Onconic Therapeutics on the 22nd that it is “a biotech with a commercialized new drug, an anticancer drug in Phase 2 clinical trials, and an obesity-treatment candidate all at once,” adding that “its business model, which combines cash generation from its own drug with development of follow-on pipeline candidates, merits attention.”
Researcher Jihoo said that Zacubo, Korea’s 37th domestically developed new drug, had domestic prescription sales of 28.7 billion won in Q3 this year, up 111% from the same period a year earlier, and explained that “prescription sales have risen for seven consecutive quarters since its launch in Q4 2024, sustaining its growth.”
Through Q3 this year, Zacubo’s cumulative prescription sales were approximately 75.4 billion won, about 75% of the company’s annual domestic prescription-sales target of 100 billion won.
Financial performance has continued to improve. Onconic Therapeutics posted revenue of 53.4 billion won and operating profit of 12.6 billion won last year, successfully returning to profitability. In the first half of this year, it recorded revenue of 47.4 billion won and operating profit of 7.4 billion won. The company is targeting annual revenue of at least 110 billion won this year, based on increased domestic sales of Zacubo and milestones from overseas licensing deals, among other factors.
In its overseas business, attention is focused on whether commercialization in China will generate additional revenue. Onconic Therapeutics has secured milestones tied to each stage of development since signing a licensing deal for Zacubo in Greater China with China’s Livzon Pharmaceutical in 2023. It applied for marketing approval in China in August last year and obtained marketing approval in India this year. If commercialization in China gains momentum, additional milestone payments and sales royalties are expected to flow in.
The key follow-on pipeline candidate is Nesuparib, a dual-target anticancer drug.  Pancreatic cancer is the most advanced area of development. In an early clinical trial of Nesuparib combined with gemcitabine and nab-paclitaxel, seven of 13 evaluable patients showed a partial response. The objective response rate (ORR) was 53.8%, the disease control rate (DCR) was 92.3%, and median overall survival (mOS) was 14.2 months. However, because these are early results from a small number of patients, efficacy and safety will need further evaluation in an expanded Phase 2 trial.
The recently disclosed obesity-treatment candidate OCN-501 was also presented as a medium- to long-term growth driver. OCN-501 aims to reduce skeletal muscle loss that can occur during weight loss when used in combination with GLP-1-class obesity drugs. The strategy targets the growing interest in muscle preservation and improved body composition in the obesity-treatment market. It is currently in the preclinical stage, and key challenges include advancing it into clinical trials and demonstrating its actual muscle-preserving effects.
Researcher Jihoo said that “Zacubo could drive short-term earnings and cash flow, while Nesuparib and OCN-501 could serve as medium- to long-term growth drivers,” and assessed that “reinvesting revenue from new-drug sales in the company’s own research and development (R&D) differentiates its business model from that of typical biotech firms, which are highly dependent on licensing deals or external financing.”

[email protected] Choi Doo-seon Reporter