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[Seungkwon kim, Edaily Reporter] Shares of Excel Therapeutics and KoBioLabs surged on Tuesday after news of global contract signings and U.S. patent developments. Alteogen also rebounded on investor optimism over potential multibillion-won royalties.

Excel Therapeutics Hits Upper Limit on Blue Magee Deal

Excel Therapeutics closed at 4,195 won, up 29.88%, on reports of a supply deal with the world’s top hyaluronic acid (HA) supplier, Blue Magee Biotech.

The two firms signed an exclusive distribution agreement for T cell culture media in China, with expected annual sales exceeding 10 billion won. PharmEdaily had earlier reported the deal in an exclusive interview with Excel’s Executive Director Yoon Lee.

Excel Therapeutics Stock Trend (Data: KG Zeroin)

Blue Magee Biotech, listed on the Chinese stock market, reported annual sales of 1.3 trillion won in 2023. The company recently entered the culture media market via tech transfer from Japan’s Rohto Pharmaceutical but chose Excel for its more advanced third-generation media.

“The CellCor media from Excel showed superior cell proliferation, safety, and efficacy compared to global competitors,” said Tingke, CEO of Blue Magee Biotech.

China’s cell culture media market was estimated at 800 billion won in 2023 and is expected to surpass 1 trillion won this year.

Excel plans to expand further in China by partnering with other major pharma firms and promoting both T cell and NK cell media. “We aim to establish our product as the standard in China,” said Lee.

KoBioLabs Also Hits Limit-Up on U.S. Patent Grant

KoBioLabs closed at 5,110 won, up 29.86%, after announcing a U.S. patent registration for its microbiome-based liver disease treatment.

KoBioLabs Stock Trend (Data: KG Zeroin)

The company confirmed that a functional strain of Ruminococcus improved liver damage in patients with insulin resistance. The strain showed significant improvements in ALT/AST levels, liver-to-body weight ratio, and bile acid levels in the cecum, with no notable side effects.

KoBioLabs now holds patents in six countries: Korea, Japan, China, Russia, Australia, and the U.S. “The U.S. patent solidifies our ability to assert exclusive rights in a key global market,” said a company official.

Alteogen Rebounds on Royalty Expectations

Alteogen rose 8% to close at 361,000 won, reversing a previous drop. The stock’s rebound was partly driven by renewed expectations for royalties from its hyaluronidase technology ALT-B4, used in Keytruda SC, which succeeded in Phase 3 trials.

PharmEdaily had previously published a pay-to-read article on the topic, which was made freely available on portals like Naver on Tuesday.

Alteogen Stock Trend (Data: KG Zeroin)

Alteogen is expected to receive Korea’s largest-ever milestones and royalties from a global pharma partner. With Keytruda’s 2024 projected sales at $29.5 billion, a 50% SC formulation conversion could yield 21 trillion won in sales. At royalty rates of 2?5%, this would mean annual revenue of 420 billion to 1 trillion won. If conversion hits 90%, royalties could reach up to 2.15 trillion won.

“The drug met its clinical goals and is now at the FDA approval stage,” said an Alteogen spokesperson.