Disrupting Biotech: The Business Model Behind NeOnc Technologies

The biotechnology industry is at the intersection of life sciences and technology, and it is one of the most dynamic portions of the global economy today. With applications ranging from healthcare and agriculture to environmental management, biotechnology is spreading its influence.

According to Grand View Research, the global technology market was valued at $1.5 trillion in 2023 and is projected to grow at a CAGR of 13.96 percent from 2024 to 2030. Achieving success in this competitive industry requires scientific ingenuity and a well-structured business model that can navigate regulations and secure funding.

NeOnc Technologies strives to master the balanced approach for biotech success. The company focuses on brain cancer treatments and a business model that is designed for sustainability and impact. Its goal is advancing medical innovation while striving to successfully blend science with a practical corporate strategy.

NeOnc Technologies specializes in developing treatments for brain cancer, an area historically hindered by the difficulty of delivering therapies across the blood-brain barrier. Headquartered in Los Angeles, California, the company has secured a significant intellectual property portfolio, boasting 135 patents worldwide, including 100 issued patents. Its treatments are being developed under the leadership of Dr. Thomas Chen, who directs science and development, and Amir Heshmatpour, who oversees finance and corporate governance.

At the heart of NeOnc’s approach is its use of nasal inhalation designed to bypass the blood-brain barrier and deliver therapeutic compounds directly to the brain. This non-invasive method potentially offers significant advantages over traditional brain cancer treatments, which often rely on invasive surgeries or systemic drug delivery that struggles to penetrate the barrier effectively. The company’s lead compound, NEO 100, exemplifies this strategy. Derived from perillyl alcohol, a naturally occurring compound, NEO 100 has shown promising results in early clinical trials.

“One of our problems is just getting the drug or the biological to the cancer. What we have in our brain is something called a blood-brain barrier,” says Dr. Chen. “It’s something that we all have to keep pathogens or compounds away from our brain. But in the case of brain cancer, it prevents the drugs we need from reaching the target.”

A defining feature of NeOnc’s clinical strategy is its focus on precision medicine. The company has identified the IDH1 and IDH2 genetic mutations as potential biomarkers for determining the best responders to NEO 100. This approach has a goal of potentially enhancing the efficacy of the treatments and aligns with a broader need for personalized medicine.

“What we’re trying to do is something that nobody else is doing for brain cancer, and that is to bypass the blood-brain barrier,” explains Dr. Chen. “We’re using nasal-brain delivery, where patients inhale the compound, and their cranial nerves deliver it directly to the brain.”

NeOnc is currently conducting multiple clinical trials to validate the potential safety and efficacy of its treatments. The company has completed a Phase 1 trial with 12 patients, reporting no significant toxicity issues, a significant milestone. A Phase 2A trial is now enrolling 25 patients with IDH1/2 mutations, and NeOnc plans to expand to a Phase 2B trial involving 60 patients before pursuing FDA approval. Additionally, the company is testing a pediatric version of its treatment, currently in Phase 1 trials.

“We found that not only did some of these patients do well, but they did much better than we anticipated. We had three patients alive for three to four years after treatment, which is almost unheard of for someone expected to die within six to eight months,” Dr. Chen says.

NeOnc’s scientific achievements are matched by its strategic business planning. Originally aiming for an initial public offering (IPO) to raise $50–$75 million, the company opted to pivot to a direct listing approach in response to unfavorable market conditions. While direct listings are relatively rare in the biotech industry, this decision reflects the company’s adaptability and focus on long-term value creation.

“We closely analyzed the data on IPOs, which were showing unfavorable trends across the board. The numbers guided our decision to pivot,” says Amir Heshmatpour, Executive Chairman of NeOnc. “We’re optimistic about the capital markets in 2025, as conditions for IPOs and M&A activity are showing signs of improvement. Our results will speak for themselves. We’ve taken the reins on financially engineering this public listing, ensuring it aligns with the company’s goals. While biotech companies often face cash burn with no revenues, we believe our decision to wait for better market conditions has positioned us for greater success, and I’m confident it was the right move.”

Beyond its immediate clinical and corporate initiatives, NeOnc’s innovative approach potentially holds significant implications for the broader biotechnology sector. By addressing the critical challenge of brain cancer treatment through a non-invasive delivery system, the company is striving to close a critical gap in oncology.

As NeOnc continues to advance its pipeline and prepares for its market debut, it serves as a model for balancing scientific advancement with disciplined business execution.