[NA Eun-kyung, Edaily Reporter] As the KOSPI closed above 3,800 for the first time and the KOSDAQ also gained on the October 20th, stem cell therapy-related stocks led the rally in South Korea’s pharmaceutical and healthcare sector. T&R BIOFAB, which had been falling since announcing a rights offering, recorded a double-digit rebound, while ST PHARM and Boryung also rose following a report by PharmEdaily.

Stem Cell Plays Post Broad Gains

According to MP Doctor, operated by KG Zeroin(formerly Market Point), companies classified as stem cell-related saw broad increases, with Nature Cell jumping 19.8 percent, Anterogen rising 6.6 percent, Corestem ChemOn up 3.2 percent, and Tego Science edging up 0.2 percent.

Ra Jung-chan, chairman of Nature Cell, presents the company’s U.S. market strategy for its autologous stem cell therapy for degenerative arthritis, JointStem, during a corporate briefing held in Yeouido at 11 a.m. on the 11th. (Photo by Kim Saemi)

Analysts attribute the rally to optimism surrounding the government’s newly announced policy to boost advanced regenerative medicine. During a regulatory reform strategy meeting chaired by President Lee Jae-myung earlier in the day, the government said it would expand stem cell therapy coverage to chronic pain and musculoskeletal disorders and shorten the drug approval and review period to 240 days.

Nature Cell was the standout performer, surging 38.2 percent over the past three trading days following the policy announcement on the 16th. The rally is believed to stem from renewed expectations for JointStem, the company’s stem cell therapy for degenerative arthritis, which has been rejected three times by the Ministry of Food and Drug Safety. PharmEdaily previously reported on the challenges surrounding its approval prospects in the United States.

Nature Cell has shifted its focus to the U.S. market after domestic commercialization stalled. Chairman Ra Jung-chan said during a corporate presentation last month that the company aims to begin a Phase 3 clinical trial in the United States in the first half of next year.

T&R BIOFAB Rebounds on Profitability Hopes

T&R BIOFAB, a regenerative medicine company, closed at 2,095 won, up 16.0 percent from the previous session. It was the first double-digit gain in about four months, following six consecutive sessions of decline.

A company official said the share price rebound was likely driven by buying after excessive selling and renewed expectations for earnings growth led by its cosmetics subsidiary BlissPack, which performed strongly in the third quarter. T&R BIOFAB expects to break even in the fourth quarter and turn profitable next year.

BlissPack accounted for 62.8 percent of total revenue in the first half of the year, underscoring its contribution since being acquired. The parent company plans to pursue growth not only in cosmetics but also in its medical business.

T&R BIOFAB had planned a 40-billion-won rights offering allocated to shareholders, but the actual amount raised is expected to fall short. Of the initial plan, 22 billion won was to be used for debt repayment, 1.7 billion won for facilities, and 15.9 billion won for R&D.

The company said it has reached an agreement with some friendly investors to delay debt repayment. With around 7 billion won in cash equivalents and rising sales, it plans to allocate available capital to R&D and facility investment.

Yoon Won-soo, CEO of T&R BIOFAB (Photo by Lim Jeong-yeo)

ST PHARM and Boryung Bounce on Positive Coverage

ST PHARM and Boryung rebounded after PharmEdaily published a report that was made available to the public on the same day.

ST PHARM drew 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 on the 20th. The therapy, Firmitagravir (STP0404), inhibits viral replication through a different mechanism than existing HIV drugs, potentially blocking the replication cycle at its core.

A company official said oral presentation selection at IDWeek is significant, as even poster presentations face high competition. ST PHARM aims to pursue a license-out deal following the Phase 2a study. The global HIV treatment market is estimated at about 27 billion dollars.

Boryung also snapped a losing streak and climbed 2.4 percent after investor sentiment improved on coverage of its recent acquisition of global marketing rights for Sanofi’s cytotoxic anticancer drug Taxotere. PharmEdaily published an analysis of how the acquisition is expected to boost future earnings.

Taxotere reported global sales of 70 million euros (about 115.4 billion won) last year. With this deal, Boryung is expected to expand its oncology business from the domestic market to a global stage.

A company spokesperson said the acquisition marks the third oncology asset addition following Gemzar and Alimta and emphasized plans to strengthen long-term growth by directly producing and distributing original anticancer drugs in global markets.