To the shareholders of Oscotec Inc.,

First of all, we would like to express our sincere gratitude for your continued interest and support for Oscotec.

We are fully aware that there have been various expectations and speculations among shareholders regarding Lazertinib. In response, Oscotec is committed to building trust through transparent disclosure and to enhancing shareholder value through sustainable growth. In line with the first quarter 2025 earnings, we would like to share the following key updates,

1. Lazertinib Royalty Revenue Status

Oscotec receives royalty revenues based on the sales performance of Lazertinib through its licensing agreement with Yuhan Corporation. For the first quarter of this year, Oscotec received approximately KRW 1.289 billion in royalty revenues. As many of you are already aware, with Lazertinib’s approvals in the United States (Q3 2024), Europe (December 2024) and Japan (March 2025), Oscotec is entitled to receive a share of global sales royalties (10~15% of net sales), distributed among Yuhan, Oscotec, and Genosco in a 6:2:2 ratio.

Having said that, we acknowledge that the current inflows of royalty revenues differ from some shareholders expectations of KRW hundreds of billions. This is primarily because global sales of Lazertinib are still in the early stages, and the sales performance in key markets such as the United States has yet to be fully reflected.

2. Global Lazertinib Sales Outlook

Although Oscotec does not independently project global sales figures, market research institutions such as IQVIA and GlobalData, along with various press releases, project continued growth in global sales for the Lazertinib plus Rybrevant (Amivantamab) therapy.

Lazertinib is already being sold in key markets including the United States and its launch in Europe and Japan is also expected soon. Additionally, the potential approval of Rybrevant’s subcutaneous (SC) formulation in the U.S. is considered a significant growth driver of future performance. The SC formulation offers improved convenience and higher patient preference compared to the existing intravenous (IV) formulation, and is expected to drive increased prescriptions in major markets such as the U.S. and Europe.

In addition to this, results from the Phase 3 clinical trial MARIPOSA showed that the combination therapy extended overall survival by more than one year compared to the current standard-of-care, Tagrisso. Following this, some experts expect that the therapy, currently labeled as “Recommended” in the U.S. NCCN (National Comprehensive Cancer Network) Guidelines, is likely to be elevated to “Preferred” treatment and potentially become the new standard-of-care.

 

<Johnson & Johnson’s Q1 2025 Earnings>

Moreover, in its Q1 2025 earnings report, Johnson & Johnson stated “Based on current 2027 Street estimates, our projections are at least 2x higher for Rybrevant plus Lazcluze.” This statement indicates that their internal sales projections for the combination therapy are at least twice as high as current market consensus for 2027.

Given these multiple drivers of performance improvement, Oscotec expects that from 2027 onward, Lazertinib’s global sales will increase substantially with expanding market share. In consequence, Oscotec’s royalty revenues are also projected to grow steadily.

3. Shareholder Communication Plan

Oscotec remains committed to regular and transparent disclosure of key data such as sales performance and royalty revenues, etc. We will do our utmost efforts to deliver accurate information to the shareholders and clarify any misunderstandings. Building shareholders’ concrete trust remains our highest priority, as Oscotec continues to emphasize long-term growth potential and generate sustainable performance rather than focusing on short-term fluctuations.

We are deeply grateful for your unwavering support for Oscotec and look forward to your continued interest and encouragement.

 

Sincerely,
Oscotec Inc.