Jeil Pharm Enters Korea’s $1 Billion Peptic Ulcer Market with Launch of First In-House Drug, “Jaqbo”

On Monday, Jeil Pharmaceutical announced its first drug, Jaqbo (zastaprazan citrate), a new type of P-CAB (potassium-competitive acid blocker), which is a novel class in the peptic ulcer market and will reach as much as $1 billion in Korea. As the company has developed the drugs at home for the first time in its 65-year history, it will become the first domestic drug it launches into the Korean market.

According to the Ministry of Health and Welfare, developed by Onconic Therapeutics, a subsidiary of Jeil Pharmaceutical, the pharmaceutical was approved in April as Korea's 37th new drug. As a new drug for erosive gastroesophageal reflux disease or GERD, it will be covered under health insurance from October 1, selling for 911 won apiece as a 20 mg tablet. 

The drug stands out for its fast-acting relief and long-lasting effects, positioning it as a cutting-edge alternative to conventional proton pump inhibitors (PPIs), which have dominated treatment for acid-related stomach conditions for over 30 years. Results of a Phase 3 clinical trial published in August in the American Journal of Gastroenterology confirmed that the efficacy and safety of treatment of erosive gastroesophageal reflux disease with the drug were comparable to those of esomeprazole, a standard PPI.

Although PPIs have several merits, they still suffer from limitations such as the delayed onset of effect genetic factors interfering with metabolism. For example, CYP2C19 polymorphism nocturnal acid breakthrough, which frequently causes patient disappointment. Furthermore, the concept of administration of PPIs with an empty stomach makes it somewhat challenging to follow the medication practice.

On the other hand, Jaqbo works by competitively inhibiting the production of stomach acid by blocking the binding of potassium ions with the proton pump. The mechanism makes it stable in the stomach's acidic environment, resulting in immediate effectivity without stomach acid activation, improving patient compliance and satisfaction. “This unique property of P-CAB allows it to bind to the proton pump regardless of stomach acid levels,” said a representative from Jeil Pharmaceuticals.

Jambo offers rapid relief after ingestion, unlike traditional PPIs, which usually take longer to act. Its extended half-life aids in managing nighttime heartburn and allows flexible dosing. Since its launch, Jaqbo has attracted attention in Korea’s peptic ulcer market, with Jeil Pharmaceutical partnering with Dong-A ST for sales and marketing and initiating launch symposiums in significant cities. 

Jeil has gained global recognition for its technology, signing a $127.5 million export contract with Livzon Pharmaceutical in 2017 and a recent technology transfer deal with an unnamed Indian firm. The company has also secured export agreements with 19 Latin American countries, totalling 21 countries worldwide. A Jeil Pharmaceutical representative said the company is “actively pursuing additional technology export contracts," positioning Jaqbo as a "potential global blockbuster drug.” 

Clinical development is now extended to enhance the indications of Jaqbo and formulations. It is accepted for therapy for patients suffering from erosive GERD, while it is studied in the prevention of gastric ulcers and NSAID-induced peptic ulcers. It also serves in the development of oral dissolving tablets. 

UBIST also says, "The domestic market in peptic ulcer drugs increased from 801 billion won in 2019 to 1.266 trillion won in 2023." In Q1 2024, PPIs led the market with 53.7%, and P-CABs had 19.5%. By Q2, PPIs declined slightly to 53.4%, while P-CABs rose to 20.2%. Jeil Pharmaceutical believes P-CABs will increase significantly as they have been on the market for four years.

A representative from Jeil Pharmaceutical stated, “Jaqbo is a valuable product that our company has been developing for a long time, using significant human and material resources through Onconic Therapeutics. We expect the share of P-CAB preparations in the peptic ulcer market to grow, and with the attention Jaqbo has received since its launch, we believe it will quickly establish itself and increase its influence as a new treatment option.”