Daehwa, Dongkook Defy Market Slump…G2GBIO Falls More Than 10%[K-Bio Pulse]

[Song Young Doo, Edaily Reporter] Pharmaceutical and biotech stocks diverged on company-specific developments as South Korean equities fell across both major markets. Daehwa Pharmaceutical gained more than 10% after its oral anticancer drug, Liporaxel, secured approval for an additional breast cancer indication in China. Dongkook Pharmaceutical also advanced after announcing plans to change its corporate name and expand its global business. G2GBIO, however, dropped more than 10% following a recent rally fueled by expectations of a licensing deal before year-end.

Daehwa Pharmaceutical share price trend.(Source=KG Zeroin MP Doctor)

Daehwa Expands from Gastric to Breast Cancer in China, Raising Expectations for Additional Supply

According to KG Zeroin‘s MP Doctor, Daehwa shares closed at KRW 13,200 on Oct. 12, up 10.25% from the previous trading session. Expectations for an expansion of Liporaxel’s Chinese business appear to have supported the rally. On Oct. 8, the company announced that China‘s National Medical Products Administration(NMPA) had approved an additional indication for recurrent or metastatic HER2-negative breast cancer.

According to Daehwa, Liporaxel’s breast cancer indication in South Korea is limited to first-line treatment. In China, the approval covers first-line treatment as well as second-, third- and later-line therapies. Adding breast cancer to its existing gastric cancer indication, with approval across multiple treatment lines, provides a broader foundation for business expansion in China.

Liporaxel is an oral formulation of the anticancer agent paclitaxel, developed using Daehwa‘s lipid-based drug delivery technology. Oral administration can reduce the burden of establishing intravenous access and undergoing drug infusions. The company also says the product does not contain Cremophor EL, a solubilizing agent used in conventional intravenous paclitaxel formulations, eliminating the need for premedication to prevent hypersensitivity reactions associated with that ingredient.

The approval was based on results from the multinational Phase 3 OPTIMAL trial and the Phase 2 OPERA trial, among other studies. According to the company, these studies demonstrated noninferiority to Taxol, the conventional paclitaxel formulation administered by weekly intravenous infusion.

Liporaxel has already entered commercial distribution in China. It received Chinese approval for gastric cancer in September 2024, and local sales began in January 2025. The drug was subsequently added to China’s National Reimbursement Drug List(NRDL), with reimbursement for its existing gastric cancer indication taking effect in January this year.

Supply revenue is also materializing. Daehwa supplied KRW 9.7 billion worth of Liporaxel to China in the first half of this year. Over the same period, the company‘s revenue from China rose to KRW 10.1 billion from KRW 1.8 billion a year earlier. The additional breast cancer approval creates an opportunity to expand revenue beyond the gastric cancer market.

“The additional breast cancer indication in China has broadened Liporaxel’s clinical applications and overseas business opportunities,” a Daehwa representative said. “We will strengthen cooperation with our local partner to supply the product and establish its market presence.”

Dongkook Plans Name Change to ‘DK Centellian’ as It Pursues Global Expansion

Dongkook Pharmaceutical also rose despite the broader market downturn after announcing plans to change its corporate name and expand globally. Its shares gained 5.58%, or KRW 1,250, to KRW 23,650. Plans to broaden its pharmaceutical-centered business into prevention, treatment, health and beauty appear to have supported investor sentiment.

The company‘s board resolved that day to pursue a corporate name change to “DK Centellian.” Dongkook plans to expand beyond its domestic pharmaceutical business into prevention, treatment, health and beauty, targeting global markets with products and technologies grounded in science.

According to the company, “DK” represents Dongkook’s 58-year history and scientific credibility. “Centellian” reflects its ambition to create future-oriented value based on its accumulated expertise. The proposed name embodies its intention to broaden its business and geographic reach while maintaining the foundations of its pharmaceutical operations.

The name change remains subject to shareholder approval. Dongkook disclosed that it will hold an extraordinary general meeting on Nov. 27 to amend its articles of incorporation. Attention will turn to whether its global expansion strategy translates into concrete business initiatives and financial results.

“We are pursuing a corporate name change to reach customers around the world across a broader range of businesses encompassing prevention, treatment, health and beauty,” a Dongkook representative said.

G2GBIO Drops Despite Licensing Expectations…Company Reports ‘No Specific Event’

G2GBIO closed at KRW 37,450, down 10.83%, or KRW 4,550, from the previous session. The shares fell sharply despite the absence of any identified company-specific negative development. Asked about the decline, a company representative said there had been “no specific event.”

The stock had risen sharply over a short period. Its price climbed approximately 39.2%, from KRW 31,900 on Sept. 22 to KRW 44,400 on Oct. 7. It posted gains for five consecutive trading sessions from Sept. 30 through Oct. 7, including a 21.07% surge on Oct. 1. The stock turned lower on Oct. 8 and extended its decline on Oct. 12, giving back part of its recent gains. Broad market weakness and profit-taking following the rally may have contributed to the selling pressure.

The recent rally had been attributed to growth in the long-acting injectable market and expectations for the global commercialization of G2GBIO‘s proprietary sustained-release platform, InnoLAMP. In a notice posted on its website late last month, the company said expanding demand for long-acting injectables, particularly for diabetes and obesity treatments, had increased interest in InnoLAMP among global pharmaceutical companies.

According to G2GBIO, global drugmakers are evaluating various platforms to develop long-acting formulations tailored to their drugs. The company cites established polymer materials, high drug loading, commercial-scale manufacturing capabilities and a competitive patent portfolio as InnoLAMP’s key strengths.

G2GBIO is also expanding the range of drugs covered by its development programs beyond semaglutide to include cagrilintide, tirzepatide and retatrutide. It is developing a long-acting formulation of CagriSema, which combines cagrilintide and semaglutide, and says it has secured related microsphere patents.

Investor attention is focused on whether collaborations with global pharmaceutical companies will lead to a licensing agreement. G2GBIO has indicated that a deal could materialize before year-end.

“We are collaborating with multiple global pharmaceutical companies, and the partnership discussions with a global company disclosed earlier this year are progressing as planned,” a G2GBIO representative previously said. “We expect our ongoing collaborations with global partners to begin delivering concrete results in the fourth quarter of this year and beyond.”