The South Korean stock market experienced a notable rally on October 20, with the KOSPI index closing above 3,800 for the first time. The KOSDAQ also saw gains, particularly driven by stocks related to stem cell therapies, which emerged as leaders in the pharmaceutical and healthcare sectors.
T&R BIOFAB, which had faced a decline following its announcement of a rights offering, rebounded with a double-digit increase. Other companies such as ST PHARM and Boryung also saw upward movement, following positive reports from PharmEdaily.
According to MP Doctor, managed by KG Zeroin (formerly Market Point), several companies in the stem cell sector reported broad gains. Nature Cell surged by 19.8 percent, while Anterogen increased by 6.6 percent, Corestem ChemOn rose by 3.2 percent, and Tego Science saw a slight increase of 0.2 percent.
Ra Jung-chan, the chairman of Nature Cell, recently presented the company”s strategy for entering the U.S. market with its autologous stem cell therapy designed for degenerative arthritis, known as JointStem, during a corporate briefing held in Yeouido. Analysts attribute the market optimism to the South Korean government”s newly announced policy aimed at enhancing advanced regenerative medicine. This policy includes expanding stem cell therapy coverage to include chronic pain and musculoskeletal disorders. Additionally, the government plans to shorten the drug approval and review period to 240 days.
Following the policy announcement on the 16th, Nature Cell”s stock performance was particularly impressive, climbing 38.2 percent over three trading days. The rally reflects renewed hopes for JointStem, which has faced three rejections from the Ministry of Food and Drug Safety regarding its approval. The company has shifted its focus to the U.S. market as domestic commercialization has stalled. Ra disclosed during a recent presentation that a Phase 3 clinical trial in the U.S. is planned for the first half of next year.
T&R BIOFAB also marked a significant recovery, closing at 2,095 won, a 16.0 percent rise from the previous session. This increase represents the company”s first double-digit gain in four months after a six-day streak of losses. A representative from the company indicated that the rebound was likely due to buying activity following excessive selling, coupled with renewed expectations for growth driven by its cosmetics subsidiary, BlissPack, which performed well in the third quarter. T&R BIOFAB anticipates breaking even in the fourth quarter and expects profitability in the following year.
BlissPack contributed 62.8 percent of the company”s total revenue in the first half of the year, highlighting its significant role since the acquisition. Although T&R BIOFAB initially planned a 40-billion-won rights offering for shareholders, it now expects to raise a lesser amount. Of the original plan, 22 billion won was earmarked for debt repayment, 1.7 billion won for facilities, and 15.9 billion won for research and development. The company has reached an agreement with supportive investors to delay debt repayment, and with approximately 7 billion won in cash equivalents, it plans to invest in research and development as well as facility improvements.
ST PHARM and Boryung also experienced rebounds following favorable coverage. ST PHARM garnered investor interest after confirming interim Phase 2a results for its next-generation HIV treatment, Firmitagravir (STP0404), which will be presented at IDWeek 2025 in Atlanta. This therapy operates through a unique mechanism to inhibit viral replication, potentially disrupting the replication cycle more effectively than existing treatments. A company representative noted the significance of being selected for an oral presentation at IDWeek, as even poster presentations are highly competitive. Following the completion of the Phase 2a study, ST PHARM aims to secure a licensing agreement.
Boryung ended a losing streak with a 2.4 percent increase, driven by improved investor sentiment following coverage of its recent acquisition of global marketing rights for Sanofi“s cytotoxic anticancer drug, Taxotere. Analysts from PharmEdaily indicated that this acquisition is expected to enhance Boryung”s future earnings potential. Taxotere recorded global sales of 70 million euros last year, and with this acquisition, Boryung aims to expand its oncology business from the domestic market to a global scale. A company spokesperson emphasized that this marks the third addition to their oncology portfolio, following acquisitions of Gemzar and Alimta, and highlighted plans to strengthen long-term growth through the direct production and distribution of original anticancer drugs in international markets.
