pharm edaily

[Song Young-doo, Edaily Reporter] Artificial intelligence based drug discovery firm Oncocross saw its shares surge Monday as investor expectations rose over new business initiatives following a leadership shake-up. Curiox Biosystems also gained after announcing a key supply contract with a U.K. company. In contrast, ABL Bio tumbled as clinical results from an out-licensed pipeline failed to meet market expectations.

Oncocross stock performance on April 2.(Source: KG Zeroin MP Doctor)

According to MP Doctor(formerly Market Point) by KG Zeroin, Oncocross posted the biggest share price increase among KOSPI and KOSDAQ listed biopharma companies on April 2. The company’s stock closed at 11,170 won, up 11.14%(1,120 won) from the previous session.

The rally was not triggered by a specific event or result but rather optimism surrounding strengthened leadership and business diversification. On March 28, Oncocross transitioned from a sole-CEO structure under Kim Yi-rang to a co-CEO model, appointing Dr. Kang Ji-hoon alongside Kim. Kang, formerly a fellow at Seoul Asan Medical Center’s oncology department, was reportedly tapped for the co-CEO role from the outset.

“With the appointment of Dr. Kang, Oncocross is shifting from its AI based drug evaluation service toward broader business expansion” a company official said. “CEO Kim will continue leading existing services, while CEO Kang will spearhead new cancer diagnostics initiatives. The stock’s recent gains likely reflect investor optimism around this strategic shift.”

Oncocross uses its proprietary RAPTOR AI platform to analyze gene expression changes caused by drugs or diseases and match them to optimal treatments. The company’s new focus cancer diagnostics centers on the ONCOfind AI platform, which enables early detection and identification of primary tumor sites. ONCOfind can predict the origin of cancers of unknown primary(CUP) with up to 99% accuracy.

CUPs, which account for roughly 5% of all cancer cases, refer to metastasized tumors where the site of origin is unknown. With 300,000 cancer patients in Korea, CUP affects an estimated 15,000 individuals annually. Similar diagnostic tests abroad cost up to 5 million won($3,700) per person, suggesting a potential domestic market size of 1.5 trillion won($1.1 billion). ONCOfind AI is currently undergoing validation at Kangbuk Samsung Hospital.

Curiox Rises on Equipment Deal, Additional Contracts in Discussion

Curiox Biosystems also saw a strong stock performance, ending the session up 9.39%(1,540 won) at 17,940 won. The stock has rebounded nearly 30% from its March low of 13,770 won.

The surge came after the company announced a deal to supply its Pluto HT automated cell analysis system to the U.K. based IMU Biosciences. The contract, valued at 811 million won($600,000), represents 17.68% of Curiox’s 2023 revenue of 4.6 billion won.

Cell analysis automation is essential in both drug development and diagnostics, with high demand for automation solutions. The global market for automated cell analysis is expected to reach 19 trillion won($14 billion) by 2025. While genome and protein analysis steps have already been automated, the cell analysis phase still lags in adoption and market activation.

A Curiox representative said the recent share price jump was likely driven by the newly announced contract. “We had been conducting demos with the client, and finalized the deal based on their capacity needs. Beyond this contract, we are in discussions with other companies regarding additional equipment sales,” the spokesperson added.

ABL Bio Drops Despite Claiming Success in Clinical Trial

ABL Bio posted the biggest loss in the biotech sector on April 2, with its stock falling 10.33%(3,800 won) to close at 33,000 won. The drop followed disappointing results from a Phase 2/3 trial of its out-licensed bile duct cancer treatment, Tovetumab(ABL001), to U.S. based Compass Therapeutics in a $410 million deal in 2018.

On April 1(local time), Compass released topline data showing an objective response rate(ORR) of 17.1% for Tovetumab combined with paclitaxel, compared to 5.3% for paclitaxel alone statistically significant with a p-value of 0.31. While the drug targets second line treatment of cholangiocarcinoma, its ORR still fell short of market expectations, despite outperforming the ORR of 4.9% seen in a U.K. Phase 3 trial of FOLFOX, the current standard of care.

ABL Bio CEO Sang-hoon Lee said, “We are pleased with the encouraging results shown in the Phase 2/3 trial for Tovetumab in cholangiocarcinoma patients. This is a particularly difficult cancer with few treatment options, and the high unmet medical need led to the drug’s Fast Track designation by the U.S. FDA.”

However, analysts pointed out that the ORR fell far below expectations. A previous Korean Phase 2 study showed a 37.5% ORR, leading investors to expect at least 30% in this trial. Critics also noted that 14.4% of patients in the combo group died within eight weeks, making their ORR unassessable. Safety data was not disclosed, nor were progression-free survival(PFS) or overall survival(OS) figures.

Even the Fast Track status was met with skepticism. “Accelerated approval seems unlikely at this stage” said Min-jeong Kim, an analyst at DS Investment & Securities. “To demonstrate clinical benefit via ORR, duration of response(DoR) data is typically required. The company previously stated that if ORR falls below 15%, PFS and OS data would be necessary. Additional data, expected in Q4, will be critical for any future biologics license application(BLA).”