On October 20, South Korea”s stock markets experienced a significant rally, with the KOSPI index closing above 3,800 for the first time and the KOSDAQ also seeing gains. Leading this surge were stocks related to stem cell therapies, marking a notable shift in the pharmaceutical and healthcare sectors.
T&R BIOFAB, which had faced declines following a rights offering announcement, saw a remarkable rebound with a double-digit increase. Similarly, ST PHARM and Boryung also enjoyed gains, influenced by a report from PharmEdaily.
Significant Increases in Stem Cell Stocks
According to MP Doctor, operated by KG Zeroin, companies involved in stem cell applications experienced widespread increases. Nature Cell surged by 19.8 percent, Anterogen rose 6.6 percent, Corestem ChemOn increased by 3.2 percent, and Tego Science saw a slight rise of 0.2 percent. This surge comes amid positive sentiment following the government”s announcement of a new policy aimed at enhancing advanced regenerative medicine.
During a regulatory reform strategy meeting led by President Lee Jae-myung, the government declared plans to expand coverage for stem cell therapies to include chronic pain and musculoskeletal disorders. Additionally, the approval and review timeline for medications will be shortened to 240 days.
Nature Cell stood out as a significant performer, climbing 38.2 percent over three trading days after the policy announcement on October 16. This rally is attributed to renewed optimism for JointStem, the company”s autologous stem cell therapy for degenerative arthritis, which has faced three rejections from the Ministry of Food and Drug Safety. The company is shifting its focus to the U.S. market as its domestic commercialization efforts have stalled. Chairman Ra Jung-chan stated that plans are in place to initiate a Phase 3 clinical trial in the U.S. by the first half of next year.
T&R BIOFAB and Profitability Prospects
T&R BIOFAB, specializing in regenerative medicine, closed at 2,095 won, marking a 16.0 percent increase from the previous session. This rebound represents the first significant gain in approximately four months, following a series of six consecutive declines. An official from the company indicated that the rise in share price was likely due to buying interest following excessive selling, alongside renewed expectations for earnings growth driven by its cosmetics subsidiary, BlissPack, which performed exceptionally in the third quarter.
The company anticipates breaking even in the fourth quarter and aims for profitability next year. BlissPack constituted 62.8 percent of total revenues in the first half of the year, highlighting its crucial role since acquisition. T&R BIOFAB had initially planned a 40-billion-won rights offering for shareholders, but it is now expected to fall short of that goal. The company has reached agreements with some investors to delay debt repayment, allowing it to focus on R&D and facility investments.
Positive Developments for ST PHARM and Boryung
ST PHARM and Boryung saw rebounds following favorable coverage by PharmEdaily. ST PHARM attracted investor interest due to the announcement 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), employs a unique mechanism to inhibit viral replication, potentially disrupting the replication cycle more effectively than current HIV medications.
A company representative noted that the opportunity for oral presentation at IDWeek is significant, given the competitive nature of such events. Following the Phase 2a study, ST PHARM intends to pursue licensing agreements.
Boryung also broke its losing streak, climbing 2.4 percent as investor sentiment improved following news of its acquisition of global marketing rights for Sanofi”s anticancer drug, Taxotere. An analysis from PharmEdaily highlighted how this acquisition could enhance future earnings, as Taxotere reported global sales of 70 million euros last year. This move is expected to expand Boryung”s oncology business from a domestic focus to a global scale, marking its third addition of oncology assets after acquiring Gemzar and Alimta.
