On October 20, 2023, South Korea”s KOSPI index closed above 3,800 for the first time, while the KOSDAQ also saw gains, driven primarily by stocks related to stem cell therapies. Companies like T&R BIOFAB rebounded significantly, recovering from a downturn following a rights offering announcement.
Nature Cell emerged as a notable performer, surging 19.8 percent, while Anterogen increased by 6.6 percent. Other stem cell firms such as Corestem ChemOn and Tego Science also recorded gains of 3.2 percent and 0.2 percent respectively. This positive momentum follows a government announcement aimed at enhancing the landscape for advanced regenerative medicine.
During a regulatory reform strategy meeting led by President Lee Jae-myung, the government detailed plans to broaden the coverage for stem cell therapy, specifically targeting chronic pain and musculoskeletal disorders. Additionally, the drug approval process is set to be expedited, with reviews expected to take no longer than 240 days.
Following this policy announcement on October 16, Nature Cell witnessed a remarkable 38.2 percent increase over three trading days, driven by renewed hope for its JointStem therapy aimed at treating degenerative arthritis. This therapy has faced multiple rejections from the Ministry of Food and Drug Safety, prompting the company to shift its focus towards the U.S. market, where it plans to initiate a Phase 3 clinical trial in the first half of 2024.
T&R BIOFAB also recorded a notable recovery, closing at 2,095 won, marking a 16.0 percent increase, its first double-digit gain in four months after a series of declines. Analysts attribute this rebound to renewed investor interest following strong performance from its cosmetics division, BlissPack, which accounted for a significant portion of the company”s revenue. T&R BIOFAB anticipates breaking even in the fourth quarter and achieving profitability in the following year.
In addition, ST PHARM and Boryung saw their stock prices rise following favorable reports from PharmEdaily. ST PHARM garnered attention with plans to present interim results of its Phase 2a HIV treatment at the upcoming IDWeek 2025 in Atlanta, highlighting a novel approach that targets viral replication differently from existing therapies. Meanwhile, Boryung ended a losing streak by climbing 2.4 percent after positive investor sentiment surrounding its acquisition of global marketing rights for Sanofi”s anticancer drug, Taxotere, which reported significant sales last year.
This acquisition is seen as a strategic move to bolster Boryung”s oncology business on a global scale, following previous additions of oncology assets. Company representatives emphasized their commitment to strengthening long-term growth through the direct production and distribution of original anticancer drugs.
