Oncocross and Daewoong Pharmaceutical Announce Strategic R&D Collaboration and Investment to Expand Drug Indications Using AI Platform RAPTOR AI

Recently, VCBeat learned that South Korean AI-driven drug discovery startup Oncocross has signed a joint R&D agreement with Daewoong Pharmaceutical and received strategic investment from the latter.

Oncocross, established in 2015, is an AI-driven new drug R&D company. Unlike most AI-driven new drug R&D companies that focus on discovering the structures of new drug candidates, Oncocross leverages its AI platform to explore new indications for both “new drug candidates” and “existing drugs.”

This strategic partnership with DaeWoong Pharmaceutical,Oncocross plans to leverage the AI-powered drug discovery platform “RAPTOR AI”(“RNA expression-based Anti-symmetrical Pairing Tool for On-demand Response AI,” abbreviated as “RAPTOR AI”), advancing DaeWoong Pharmaceutical’s research on expanding new indications for its investigational drugs “Enavogliflozin” and “DWN12088.”

The Oncocross initiative aims to expand the indications of Daewoong Pharmaceutical’s investigational diabetes treatment, Enavogliflozin, to include obesity, cardiovascular diseases, and renal diseases through the “RAPTOR AI” platform; simultaneously, it will drive the exploration of new indications for Daewoong Pharmaceutical’s investigational prolyl-tRNA synthetase (PRS) inhibitor for pulmonary fibrosis, DWN12088.

Regarding the company's strategic partnership with DaeWoong Pharmaceutical,Oncocross CEO Yirang Kim“He stated, ‘Our AI technology aligns with the core strengths of Daewoong Pharmaceutical in new drug R&D. We will strive to transform the traditional pharmaceutical R&D model and serve as a catalyst for propelling the South Korean pharmaceutical industry to new heights.’ Yirang Kim was originally a medical oncologist. After the company’s establishment, he retained his physician status, serving concurrently as a doctor and CEO of Oncocross. Since March this year, he has been dedicated full-time to the company’s operations.”

DaeWoong Pharmaceutical CEO Seng-Ho JeonIt also expressed future prospects for this collaboration: “The integration of AI into new drug development is a prevailing trend in the pharmaceutical industry. We anticipate that Oncocross’s distinctive AI platform, combined with DaeWoong Pharmaceutical’s core capabilities in new drug R&D, will establish a successful Open-Collaboration business model. Through this partnership, both parties aim to expand the indications of drugs under development and strive to enhance patients’ quality of life.”

Industry insiders noted that Oncocross primarily focuses on new drug candidates entering clinical trials and marketed drugs with established safety profiles. The company has forged extensive collaborations with major South Korean pharmaceutical firms, including Jeil Pharma, ST Pharm, Korea Pharma, and Daewoong Pharmaceutical, achieving significant milestone results. These accomplishments have garnered broad market recognition for Oncocross’s value.

Oncocross is the only strategic partner of Daewoong Pharmaceutical that has decided to increase its strategic investment. Daniel Kim, CFO of Oncocross, stated, “Securing strategic financing from a top-tier South Korean pharmaceutical company like Daewoong Pharmaceutical will enhance overseas pharmaceutical companies’ trust in Oncocross and will have a highly positive impact on Oncocross’s planned listing on the Korean KOSDAQ stock market by the end of this year.” Earlier this year, Oncocross also received financing from NH Investment & Securities, its lead underwriter for the IPO.

In 2019 and 2020, Oncocross completed its Series A financing of KRW 6.5 billion (approximately USD 6 million) and Series B financing of KRW 16.5 billion (approximately USD 15 million), respectively. In 2020, it became the first Korean AI-driven drug discovery company to sign a licensing-out agreement. To date, Oncocross has entered into multiple licensing-out and licensing-in agreements.

Daewoong Pharmaceutical, established in 1945, is a leading player in South Korea’s prescription drug market and ranks among the top 300 pharmaceutical companies globally. The Daewoong Group operates 29 affiliates in the healthcare sector, spanning pharmaceuticals, active pharmaceutical ingredients (APIs), drug R&D, medical devices, cosmetics, and healthcare information services. With a workforce of over 3,500 employees, the company maintains eight subsidiaries across the United States and Asia, along with three R&D centers and six production facilities.

Oncocross, established in 2015, is a high-tech pharmaceutical company that leverages AI platform technologies to discover new drug candidates and identify novel indications for drugs under development. The company primarily focuses on drug candidates entering clinical trials or marketed drugs with established safety profiles, collaborating with pharmaceutical enterprises in these areas.