On October 20th, South Korea”s KOSPI index surpassed 3,800 for the first time, while the KOSDAQ also experienced gains, with stem cell therapy-related stocks driving the surge in the pharmaceutical and healthcare sectors.
T&R BIOFAB, which had faced declines following a rights offering announcement, saw a notable rebound of over 16 percent. Other companies, including ST PHARM and Boryung, also benefited from positive reports published by PharmEdaily.
Analysts noted that the overall rise in stem cell-related companies was fueled by positive sentiments regarding a new government policy aimed at enhancing advanced regenerative medicine. During a regulatory reform meeting led by President Lee Jae-myung, the administration unveiled plans to broaden coverage for stem cell therapies to include chronic pain and musculoskeletal disorders, alongside a commitment to reduce the drug approval process to 240 days.
Nature Cell emerged as a leading performer, recording a 38.2 percent increase over three trading days following the policy announcement on October 16th. This surge is attributed to renewed optimism surrounding its flagship product, JointStem, a stem cell therapy for degenerative arthritis that has faced multiple rejections from the Ministry of Food and Drug Safety. The company is now aiming to pivot towards the U.S. market, with plans to initiate a Phase 3 clinical trial for JointStem in the first half of the upcoming year, as stated by Chairman Ra Jung-chan during a corporate briefing.
T&R BIOFAB closed at 2,095 won, marking its first double-digit gain in four months after a series of declines. Company officials suggested that the rebound was driven by a wave of buying following previous excessive selling, as well as renewed profitability expectations linked to its cosmetics subsidiary, BlissPack, which had a strong third quarter. T&R BIOFAB anticipates breaking even in the fourth quarter and achieving profitability in the following year. The cosmetics division accounted for over 62 percent of total revenue in the first half of the year, highlighting its importance since its acquisition.
Meanwhile, ST PHARM and Boryung also saw increases following favorable coverage. ST PHARM attracted investor interest after it was reported that interim Phase 2a results for its next-generation HIV treatment would be presented at IDWeek 2025 in Atlanta. The therapy, known as Firmitagravir (STP0404), offers a novel mechanism for inhibiting viral replication, potentially revolutionizing treatment options. The company”s official noted the significance of being selected for an oral presentation, as competition for such opportunities is fierce.
Boryung”s stock rose by 2.4 percent, recovering from previous losses, as investor sentiment improved following coverage of its acquisition of global marketing rights for Sanofi”s anticancer drug, Taxotere. This acquisition is expected to enhance future earnings, with Taxotere having generated substantial sales in the previous year. Boryung aims to expand its oncology business beyond domestic borders, marking its third significant addition to its oncology portfolio.
