Youngshin Kwak, Head of Oscotec Research Institute: "We Will Compete with Anti-Resistance Cancer Therapy Within 3 Years" [BioUSA]

Three Consecutive Global Big Deals: Now a Company Sought After by Big Pharma
Doubling the Pipeline in Three Years Through R&D Reinvestment

"After the Seviteronib deal, the way global partners view Oscotec has completely changed. When I introduce our three deal track records, their reactions shift 180 degrees."

Youngshin Kwak, Head of Research at Oscotec, said this in an interview with The Asia Business Daily on the 24th (local time) at the 2026 Bio International Convention (BioUSA) held in San Diego, USA. On June 1, Oscotec licensed out its autoimmune disease drug candidate, Seviteronib, to Agios Pharmaceuticals in the United States in a deal worth up to 665 million dollars (approximately 1 trillion won). Since Agios only needs to conduct Phase 3 clinical trials, milestone payments and royalties are expected to flow in sequentially within the next two to three years. Kwak stated, "We have out-licensed a pipeline that could surpass Leclaza."

Youngshin Kwak, Head of Research at Oscotec, is interviewed by The Asia Business Daily at the Bio International Convention (BioUSA) held in San Diego, USA, on the 24th (local time). Photo by Minjae Kwak

This is Oscotec's third global deal, following Leclaza (licensed out to Yuhan Corporation as a treatment for non-small cell lung cancer) and ADEL-Y01 (a candidate for Alzheimer's disease, jointly developed with Adel and licensed out to Sanofi). All three deals differ in development approach, therapeutic area, and clinical stage. They achieved results through various routes, including joint development, license-in and license-out, and out-licensing following in-house clinical trials. There are few Korean biotech firms that have repeatedly executed three global big deals. Kwak commented, "A wide spectrum of capabilities appears attractive to global partners." The change was felt immediately at this event: one global big pharma company proactively contacted Oscotec to request an explanation. Kwak said, "It made me realize that our preparations have not been in vain." Oscotec is currently handling more than ten partnering meetings at this event.

The most advanced pipeline is OCT-648, a renal fibrosis inhibitor. Renal fibrosis is a chronic condition in which kidney tissue hardens and loses its function; current treatments mainly focus on slowing disease progression, so there is significant demand for new therapies targeting the root cause. OCT-648 works by indirectly weakening the signaling pathways that drive fibrosis, and animal studies have shown a trend where fibrosis markers decrease as the drug dosage increases. Kwak said, "This could be the quickest out-licensing candidate among our current goals, possibly within one to two years." The rationale for proactively seeking partnerships even before finalizing the development candidate is clear: because chronic diseases require long-term clinical trials for safety verification, it is preferable to license out at an early stage rather than carry the project all the way through.

The core of Oscotec's three-year strategy is anti-resistance cancer therapy (ACART). Drug resistance remains the ultimate challenge in cancer treatment. The strategy is to delay the point at which all treatment options are exhausted by blocking the very pathways through which cancer cells develop resistance when combined with standard therapies. The starting point was demonstrating in global clinical trials that co-administration with existing cancer drugs can fundamentally block the mechanisms of resistance and suppress recurrence. Kwak stated, "ACART is the key focus for pipeline development over the next three years," adding, "Within three years, we will prove whether Oscotec leads the world in anti-resistance cancer therapy." OCT-598, currently in Phase 1 clinical trials, is at the forefront, with data expected to be released next summer. Kwak noted that since out-licensing before clinical data is available is difficult, the company is focusing on generating interest and momentum for now.

The cash secured from the Seviteronib deal will be invested in strengthening internal capabilities. Oscotec's vision is to create a virtuous cycle by securing cash from licensing deals and reinvesting it in research and development (R&D). The company aims to double its research staff within three years and expand its pipeline from the current six to twelve candidates. Kwak emphasized, "We are structuring our pipeline so that we can achieve at least one licensing deal every one to two years," and added, "That is a promise I fully intend to keep."

This content was produced with the assistance of AI translation services.