On March 24, Onconic Therapeutics announced that it has requested a milestone payment from its Chinese partner, Livzon Pharmaceutical Group, for the technology transfer of its gastroesophageal reflux disease (GERD) treatment, Zaqbo (active ingredient: Zastaprazan).

Following a $3 million milestone payment from Livzon in February, Onconic has completed the transfer of commercial manufacturing technology (CMC) and requested an additional $1.5 million. The company confirmed that milestone payments for the global new drug Zaqbo are progressing as scheduled.

In 2023, Onconic signed a technology transfer agreement with Livzon, granting exclusive rights for the development, approval, production, and commercialization of Zastaprazan in Greater China. The deal includes an upfront payment of $15 million and a total potential value of $127.5 million.

Zastaprazan, which received new drug approval in South Korea, was launched as Zaqbo in October 2024. This year, the drug completed a Phase 3 clinical trial for gastric ulcer treatment, and an additional approval application has been submitted to South Korea’s Ministry of Food and Drug Safety (MFDS). Onconic also plans to seek regulatory approval in Mexico, Latin America, and Southeast Asia using South Korean approval data to apply for clinical trial exemptions.

A representative from Onconic Therapeutics stated, “Zastaprazan continues to demonstrate its value as a new drug both in South Korea and internationally. With ongoing technology transfers and clinical developments, we aim to accelerate global market expansion. Our collaboration with Livzon in China is progressing smoothly, and we anticipate significant revenue and royalty income in the future.”

Meanwhile, Livzon Pharmaceutical, a leading Chinese pharmaceutical company with a market presence exceeding $410 million, is conducting Phase 3 clinical trials for the oral formulation of Zastaprazan while simultaneously advancing a Phase 1 trial for an injectable formulation.