Oscotec is a research-and-development-focused biotech that does not sell drugs directly but discovers and develops drug candidates, hands them to overseas pharmaceutical companies, and collects upfront payments, milestones, and royalties; together with its subsidiary Genosco it develops small-molecule synthetic drugs. Its flagship achievement is the lung-cancer treatment lazertinib (Leclaza / Lazcluze), which flows through Yuhan to Janssen and brings in royalties. In June 2026 it out-licensed the SYK inhibitor cevidoplenib to Agios of the United States for up to $665 million (about ₩1 trillion), receiving a non-refundable $25 million upfront payment. What stands out is the strength of a proven royalty source in lazertinib already generating revenue and a second pipeline asset actually contracted at a ₩1 trillion scale. The caution is that earnings spike in years when milestones arrive, so it is hard to declare the P/E cheap or expensive based on last year's profit, and the stock weakens if clinical delays or milestone gaps drag on.
At-a-glance assessment financial health · growth · profitability · valuation
- Debt ratio, current ratio and interest burden all look healthy.
- Revenue rose 193.6% year over year, and the pace is slowing (3-year trend: rising).
- Most recent quarter (Q1 2026) revenue was 88.4% higher than a year earlier.
- ROE is 28.9% (controlling-interest basis). It is above the sector average.
- Operating margin is 52.2%.
- The P/E sits above the sector median, reflecting elevated expectations.
Ownership & governance As of 2025-12-31
Largest shareholder Kim Jeong-geun 12.46% (individual)
Controlling bloc incl. related parties 12.67%
With the controlling bloc holding 13%, ownership is dispersed, leaving room for control-related or activist dynamics.
🔎 In-depth analysis
- Oscotec is not a pharmaceutical company that makes and sells drugs directly; it is a research-and-development-focused biotech that discovers and develops drug candidates, hands them to overseas pharmaceutical companies, and collects the proceeds.
- Together with its subsidiary Genosco it develops small-molecule synthetic drugs.
- It earns money in two main ways.
- The first is the upfront and stage-based milestone payments received when it transfers a technology.
- The second is royalties (running royalties) received as a set percentage of sales once the drug is actually sold.
- Its flagship achievement is the lung-cancer treatment lazertinib (product names Leclaza / Lazcluze), where royalties and milestones flow in through a structure that runs from Yuhan to Janssen, part of the U.S.
- J&J group.
- The latest close was ₩31,200 and the market cap is ₩1.2 trillion.
- The price sits below its 20-day line (₩36,470) and below its 60-day line (₩43,628).
- Trading below both the short- and medium-term moving averages, the trend is on the soft side.
- The RSI (a gauge comparing the strength of gains and losses over the past 14 days on a 0-100 scale) is 31.1, a neutral level.
- The one-month change is -19.9%, the three-month change is -34.0%, and the price is -49.7% from its 52-week high.
- Relative strength versus the KOSDAQ is 60 (on a 1-99 scale that weights recent returns against the index over the past year more heavily; higher means stronger than the market).
- That places it in roughly the top 40% of all stocks by strength.
- Over the past three months it lagged the index by 12.1%.
- Chart signals are best read alongside trading volume and the dates of disclosures.
- 2025 was a year of swinging to profit, with revenue of ₩99.8 billion, operating profit of ₩52.1 billion, and net profit of ₩52.3 billion.
- But this profit reflects milestones and royalties recognized all at once, so it is not a level that repeats every year.
- As a result, the metrics — a P/E ratio (how many times one year's earnings the share price represents) of 22.80x and a P/B (how many times book equity) of 6.58x — are computed on the special base of a strong prior-year profit.
- The ROE (how much is earned on equity in a year) is high at 28.9%, but this too comes from last year's large profit.
- The balance sheet itself is sound.
- The debt ratio (debt relative to equity) is low and the current ratio is 510%, so cash and cash-equivalent assets far exceed debt due soon.
- Net debt (total borrowings minus cash) is effectively nil, close to a net-cash position.
- EV/EBITDA (enterprise value including debt divided by operating profit before depreciation and amortization) is 24.9x.
- It is worth keeping in mind that a biotech developer is hard to value on such accounting metrics alone.
- Over five years, a long run of operating losses gave way to a large swing to profit in 2025.
- Operating results went from a loss of -₩32.7 billion in 2023 and -₩2.7 billion in 2024 to +₩52.1 billion in 2025.
- Revenue also grew 193.6%, from ₩34.0 billion in 2024 to ₩99.8 billion in 2025.
- The core of this growth is royalties from the expanding global sales of lazertinib, plus milestones tied to commercialization in Japan and China.
- Earnings, however, are uneven.
- In the first quarter of 2026 the company posted revenue of ₩3.65 billion, an operating loss of -₩9.99 billion, and a net loss of -₩4.99 billion.
- Revenue rose 88.4% year on year, but losses were incurred as pipeline clinical and R&D investment continued.
- Future earnings are not a smooth annual flow but a step-shaped structure driven by when milestones arrive.
- In 2026, the ₩37.5 billion upfront payment received from Agios will be recognized, and if lazertinib expands into first-line treatment there is room for royalties to grow further.
- The recent narrative centers on two threads.
- First, the June 2026 out-licensing of the SYK inhibitor candidate cevidoplenib (SKI-O-703) to Agios of the United States for up to $665 million (about ₩1 trillion).
- The company received a $25 million upfront payment (about ₩37.5 billion) on June 17, with no obligation to return it.
- This molecule, aimed at immune thrombocytopenia (ITP) and rheumatoid arthritis, has completed global Phase 2 trials.
- Second is the lazertinib thread.
- As overseas sales of the Leclaza/Rybrevant combination therapy rise, royalties flow in, and disclosures on the distribution of Janssen-related milestones have continued.
- Alongside this, there were disclosures related to investigational new drug (IND) applications for follow-on molecules.
- The share-price decline after the contract is read as reflecting caution about the remaining clinical variables.
- Consider the strengths and cautions separately.
- The strength is that lazertinib, a proven royalty source, is already generating revenue.
- On top of that, the company has actually contracted a second revenue pipeline in cevidoplenib at a ₩1 trillion scale.
- The balance sheet is stable and close to net cash.
- The caution is the nature of the earnings.
- Oscotec's profit does not repeat every year but spikes in the years when milestones arrive.
- It is hard to plug last year's profit straight into this year to declare the P/E cheap or expensive.
- The core of the company's value lies not in accounting profit but in the present value of lazertinib's future royalty flows and the upfronts and milestones its pipeline will generate.
- In the end, it is strong when clinical progress and commercialization advance are confirmed, and weak when clinical delays or milestone gaps drag on.
🔎 Valuation vs peers Inconclusive
Compared against research-and-development-focused biotechs that develop and export drug technology for royalties rather than selling drugs directly; Yuhan shares the royalty structure as lazertinib's partner, and Alteogen is close in business substance in that it exports platform technology and receives royalties.
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| Yuhan Corporation | 27.66x | 2.27x | 8.22% |
| Alteogen | 113.48x | 36.11x | 31.82% |
| Samsung Biologics | 34.37x | 8.23x | 23.95% |
The P/E of 25.6x and P/B of 7.4x are computed on the strong 2025 profit, which clustered milestones, so it is hard to judge cheap or expensive from these multiples alone. Compared with Alteogen (P/E 133x), which exports drug technology, the multiple itself is lower, but the two companies' earnings natures differ, so a simple comparison has its limits. Oscotec's real value lies less in accounting-profit multiples and more in the present value of lazertinib's future royalty flows and the upfronts and milestones its pipeline — cevidoplenib and others — will generate. Because earnings spike in a step-shaped pattern, it is better to watch pipeline progress than to annualize a particular quarter's results and pin down a valuation. On that basis the verdict is Inconclusive.
Price history Close · MA20 · MA60
The latest close is ₩31,200 and the market capitalization is ₩1.2 trillion. The price sits below its 20-day moving average (₩36,470) and below its 60-day moving average (₩43,628). It is under both its short- and medium-term moving averages, so the trend looks subdued. The RSI (a supplementary indicator that gauges the strength of gains versus losses over the past 14 days on a 0-100 scale) is 31.1, a neutral level. The one-month change is -19.9%, the three-month change is -34.0%, and the position relative to the 52-week high is -49.7%. Relative strength versus the KOSDAQ is 60 (on a 1-99 scale, converted from returns against the index over the past year with more weight on recent performance; higher means stronger than the market). It is stronger than roughly 60% of all stocks. Over the past three months it lagged the index by 12.1%. Chart interpretation is best done alongside trading volume and the dates on which disclosures occur.
Relative performance stock vs index · start = 100
Excess return vs index · 3M -12.06% / 6M -18.60% / 12M +3.91%
Key metrics vs sector median
Valuation
The P/E of 22.80x is above the sector median (15.98x). The P/B of 6.58x is above the sector median (1.37x).
Enterprise value (EV)
EV = market cap + net debt. It reflects cash and debt, so it captures the real cost of the whole business that market cap alone misses; lower multiples are cheaper relative to earnings or sales.
Intrinsic value (DCF estimate)
DCF (discounted cash flow) estimate — discount rate 11.6%, initial growth 4.0%→terminal 2.0%, 10-yr forecast, earnings-based. A reference range that shifts materially with assumptions.
Profitability & financials
Return on equity (ROE) is 28.9%, above the sector average (3.0%). The operating margin is 52.2%. The debt ratio is 126.8%, so the financial structure is moderate.
Growth FY2025 · annual report (consolidated)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $3.3M | $22.5M | $66.2M | +193.58% ↓ slower |
| Operating profit | -$21.6M | -$1.8M | $34.5M | — |
| Net profit | -$16.1M | $580,939 | $34.7M | +5871.65% |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $2.6M | $3.4M | $3.3M | $22.5M | $66.2M |
| Operating profit | -$18.6M | -$19.0M | -$21.6M | -$1.8M | $34.5M |
| Net profit | -$17.4M | -$16.2M | -$16.1M | $580,939 | $34.7M |
| Revenue CAGR | 4-yr avg 124.90% | ||||
Revenue rose 193.6% year over year (2023 ₩5.0 billion → 2024 ₩34.0 billion → 2025 ₩99.8 billion), and the three-year trend is 'rising'. That said, the pace of growth slowed from the prior year. Over the 5 years on record, revenue compound annual growth (CAGR) is 124.9%. The two-year revenue CAGR is 349.1%. In the most recent quarter (Q1 2026), revenue was 88.4% higher than the same period a year earlier.
Latest quarterly results Q1 2026 · vs year-ago
Technical indicators
What stands out
- ROE of 28.9% points to solid profitability.
- Revenue grew 193.6% year over year, a sign of growth.
- The balance sheet is stable in terms of debt and liquidity.
Points to watch
- The price is high versus peers, so expectations already appear priced in.
Recent news & events searched · sourced
- 2026-06-01FilingSigned an out-licensing contract for the SYK inhibitor candidate cevidoplenib (SKI-O-703) to Agios of the United States for up to about ₩1 trillion ($665 million). A $25 million upfront payment, followed by development- and commercialization-stage milestones and net-sales royalties.Secures a second revenue pipeline after lazertinib. The upfront flows in immediately, and further inflows become possible as clinical and commercialization progress unfolds. Source
- 2026-05-22FilingIND approval for a Phase 1 trial to change the drug formulation of cevidoplenib (SKI-O-703). Entering the next development stage.Confirms that clinical development of the out-licensed molecule is continuing. Over the medium term, this connects to milestone-achievement conditions. Source
- 2026-05-14FilingMaterial-management disclosure regarding the distribution of Yuhan's Janssen Biotech technology-transfer milestone. Confirms the lazertinib-related revenue structure.Reconfirms the path by which lazertinib royalties and milestones translate into actual revenue. Room for higher royalties as Leclaza sales expand. Source
- 2026-05-14EarningsQ1 2026 quarterly report. Revenue of ₩3.65 billion (+88.4% year on year), an operating loss of -₩9.99 billion, and a net loss of -₩4.99 billion. Revenue rose on royalty recognition; losses on R&D investment.Shows the structure in which earnings swing sharply from quarter to quarter depending on the presence of milestones. The first-half upfront inflow will be reflected from Q2 onward. Source
Figure cross-check computed ↔ external
| Metric | Computed | External | Status | Source |
|---|---|---|---|---|
| 2025 revenue and operating profit | revenue ₩99.8 billion / operating profit ₩52.1 billion | revenue ₩99.8 billion / operating profit ₩52.1 billion | Confirmed | link |
| Cevidoplenib out-licensing size | approx. ₩1 trillion, 2500 | 66500 , 2500 | Confirmed | link |
| Q1 2026 results | revenue 36.5 / -99.9 / -49.9 | revenue 36.5 / -99.9 / -49.9 | Confirmed | link |
Recent filings
- 2026-06-01Disclosure
- 2026-05-29OwnershipOwnership-change filing
- 2026-05-22Disclosure
- 2026-05-22OwnershipOwnership-change filing
- 2026-05-14PeriodicQuarterly report
- 2026-05-14Disclosure
- 2026-05-14Disclosure
- 2026-05-07Disclosure
- 2026-04-09OwnershipOwnership-change filing
- 2026-03-30Disclosure
- 2026-03-30Shareholders' meeting notice
- 2026-03-20Litigation disclosure
📖 Plain-language glossary — expand if you are new to this
- P/E
- How many times a year's net profit the price is worth (lower is cheaper relative to earnings). The P/E here is on trailing (last full-year) results; for companies whose earnings swing fast (memory chips and other cyclicals/high-growth), a forward P/E on this year's expected earnings is more accurate.
- P/B
- Price relative to net assets (equity). Around 1x means it trades near book value; below 1x means below book.
- P/S
- Price relative to a year's revenue — useful for growth companies with thin earnings.
- Net debt / EV
- Net debt = interest-bearing debt − cash. Negative means more cash than debt (net cash). EV (enterprise value) = market cap + net debt, closer to what it would cost to buy the whole business.
- EV/EBIT · EV/EBITDA · EV/Sales
- Enterprise value against operating profit (EBIT), EBITDA, or revenue. Unlike P/E these reflect debt and cash; lower is cheaper relative to earnings power or sales.
- FCF / FCF yield
- Free cash flow = operating cash − capex, the cash actually left over. FCF yield = FCF ÷ market cap; higher means more cash generated per unit of market value.
- Intrinsic value (DCF)
- Future free cash flow (or, for some capex-heavy but profitable names, forecast earnings) discounted to today to estimate per-share value. Because it shifts a lot with the discount-rate and growth assumptions, it is shown as a bear/base/bull range, and the basis and assumptions are disclosed in one line beneath it.
- ROE
- How much profit the company earns in a year on its equity (%). Higher means better returns on capital.
- EPS / BPS
- Earnings per share / net assets (book value) per share.
- Operating / net margin
- Profit left from the core business / final profit after tax and interest, per unit of revenue.
- Debt ratio
- Debt relative to equity (%). Higher means more reliance on borrowing (norms vary by sector).
- Current ratio
- Assets convertible to cash within a year against debt due within a year. Above 100% leaves some short-term headroom.
- Interest coverage
- How many times operating profit covers the interest owed. Below 1x means operating profit alone struggles to cover interest.
- Dividend yield / payout ratio
- The year's dividend as a % of today's price / the share of earnings paid out as dividends.
- Revenue CAGR
- Multi-year growth expressed as a single yearly average (compound annual growth rate).
- RSI (short-term signal)
- Whether recent price action is overheated or beaten down. Above 70 is overbought, below 30 oversold.
- MA20 / MA60 (moving averages)
- The 20- and 60-day average price. Price above them signals a firmer short-term trend.
- vs 52-week high
- How far below the past year's peak the price sits now (%).
All figures are for reference only; how they read varies by sector and over time.
Sources: Korea FSC market-price API (data.go.kr), OpenDART, KRX/KIND — public data only.
Bong Stocks presents public-data-based information for reference only. It is not investment advice and contains no target prices, ratings, or buy/sell recommendations. Verify independently before making any decision.