Trusted AI? Amid Market Downturn, Noul and GeneMatrix Hit Upper Limit[K-bio Pulse]

[Yu Jin-hee, Edaily Reporter] SEOUL, South Korea- On the 17th, despite a bearish domestic stock market, the bio sector (including pharmaceuticals, biotech, and medical devices) proved resilient, with three companies landing in the top 10 gainers. Reflecting experts’ view that artificial intelligence (AI) will drive the greatest advances in biotech, optimism surged around Noul and GeneMatrix, both of which leverage AI-driven innovation.

Recent stock price trend of Noul. (Source: KG Zeroin MP Doctor)

Noul Rises on Profitability in Medical AI

According to KG Zeroin MP Doctor (formerly Market Point), shares of Noul, GeneMatrix, and Oncocynic Therapeutics closed up 29.98% (3,620 won), 29.94% (3,190 won), and 20.49% (44,700 won), respectively.

Medical AI company Noul posted consecutive upper-limit gains for two sessions, driven by concrete signals of profitability following years of technological progress that reassured investors. Founded in 2015, Noul developed the world’s first AI diagnostic lab solution, miLab, which enables diagnostic testing in resource-limited environments lacking skilled professionals and infrastructure.

On September 15, Noul secured approval in Vietnam for its AI-based cervical cancer screening solution, miLab CER. It marks the first AI-driven cervical cancer diagnostic solution to be authorized by the country’s medical device regulator. According to the World Health Organization’s International Agency for Research on Cancer (IARC), about 4,600 Vietnamese women are newly diagnosed with cervical cancer each year, with roughly half succumbing to the disease. Noul’s entry into this market is expected to improve local public health significantly.

Global expansion is underway, with plans to launch miLab CER in Europe and Latin America next month, followed by a one-stop AI device in December that enables disease diagnosis from a simple fingertip blood draw. The company is also in talks with a major U.S. firm for blood analysis product supply and is expanding manufacturing capacity to meet growing demand.

Notably, Noul was the sole medical AI company invited to last month’s global health forum co-hosted by the Gates Foundation and the Right Foundation for Global Health. The Gates Foundation is prioritizing the adoption of AI technologies in low- and middle-income countries to advance healthcare equity.

Revenue has been rising in tandem. Noul posted 2.8 billion won in sales in the first half of this year, already surpassing last year’s annual total of 1.6 billion won. Its 2023 sales target stands at 6.9 billion won.

CEO Chan-Yang Lim commented, “Over the past decade, miLab has spearheaded innovations in global health by improving medical accessibility. With strong trust and quality competitiveness, further achievements are within reach.”

Recent stock price trend of GeneMatrix. (Source: KG Zeroin MP Doctor)

GeneMatrix Secures Exclusive Rights to AI-Designed Antigen Technology

GeneMatrix also hit the daily upper limit after announcing it had secured exclusive rights to its AI-driven antigen redesign platform, laying the foundation for global expansion. The trigger was U.S. patent registration for its lead candidate, the cervical cancer therapeutic vaccine GMPV-12. The company plans to advance the program into clinical development while pursuing co-development and license-out deals with multinational biopharma companies.

GMPV-12 uses AI-based protein modeling to redesign antigens of high-risk human papillomavirus (HPV) strains. It activates T cells within the body to attack cancer cells. A Johns Hopkins University research team previously validated its efficacy in preclinical cervical cancer models.

A GeneMatrix official said, “In animal models, GMPV-12 treatment significantly suppressed tumor growth, while T-cell immune responses against tumor tissue were three times stronger than the control group. We will actively pursue development and technology partnerships for cervical cancer therapy.”

Meanwhile, Oncocynic Therapeutics surged on unexpected news of a bonus issue, granting three new shares per existing share. The offering totals 33.3 million new shares, scheduled for listing on November 3, signaling the company’s confidence in its financial position.

The firm’s first-half sales reached 18.6 billion won, already exceeding last year’s 14.8 billion won, largely driven by growth in prescriptions of its reflux disease drug Jacubo. A swing to profitability is also expected this year. Hyundai Motor Securities projects annual sales of 47 billion won and operating profit of 14 billion won in 2023.

An Oncocynic spokesperson stated, “Jacubo has become a cash cow, driving structural improvements. We will reinvest secured capital into new pipelines, creating a virtuous cycle.”