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[Kim Jinsoo, Edaily Reporter] On the 23rd, shares of Bridge Biotherapeutics hit the upper limit following news that the company had sold its management rights to a U.S.-based cryptocurrency investment firm. Meanwhile, Lunit’s stock rose amid expectations of government support after meeting with President Lee Jae-myung to discuss growth in the medical AI sector.

Nature Cell also attracted investor attention after announcing that its osteoarthritis treatment would be available for use in the U.S. starting later this month.

Recent stock price trend of Bridge Biotherapeutics. (KG Zeroin’s MP Doctor)

Bridge Biotherapeutics Hits Upper Limit on Management Rights Sale

According to KG Zeroin’s MP DOCTOR (formerly Market Point), Bridge Biotherapeutics (hereafter “Bridge Biotherapeutics”) hit the upper price limit at the opening of trading. Its stock price rose by 282 KRW from the previous trading day to close at 1,225 KRW. The surge is attributed to news of the company’s sale of management control, raising hopes that it may be removed from the watch list.

On June 20, Bridge Biotherapeutics disclosed plans for a capital increase totaling 25 billion KRW (20 billion in common stock and 5 billion in convertible bonds). As a result, the largest shareholder will change from CEO Lee Jung-kyu to Parataxis Korea Fund I LLC and one other party.

Previously, Bridge Biotherapeutics was placed on the watch list in March due to its failure to resolve issues related to pre-tax losses from continuing operations. In April, the company faced further difficulties when its lead pipeline, BBT-877 (a treatment for idiopathic pulmonary fibrosis), failed to meet the primary endpoint in a Phase 2 clinical trial. Its stock price, which was 9,280 KRW in mid-April, had dropped to 671 KRW by June 16.

The company originally planned to resolve its financial losses through licensing-out of its pipeline based on the BBT-877 trial results. However, after failing to demonstrate efficacy, it shifted direction toward capital expansion and decided to sell management control to Parataxis. Parataxis Korea Fund is a special-purpose company (SPC) established by Parataxis Holdings, a digital asset hedge fund affiliated with Parataxis Capital Management (PCM) in the U.S.

Of the 25 billion KRW raised, 4 billion will be used for operations and 16 billion for new business development. The new business plan includes building a Bitcoin treasury platform for institutional investors, leveraging Parataxis’s experience in digital asset investments. The 5 billion KRW raised through bond issuance will also be used for operational purposes.

However, questions remain about the competitiveness and sustainability of the biotech business. Although former CEO and major shareholder Lee Jung-kyu has announced he will remain at the company to focus on R&D and tech licensing, many believe this is no longer the company‘s core business.

An industry insider commented, “When companies unrelated to biotech acquire biotech firms, synergies are usually limited. As a result, the biotech business often becomes non-core. It will be difficult to continue development of drug candidates beyond the lead pipeline.”

◇Lunit Rises After Meeting with President Lee - Hopes for Government Support

Lunit’s stock rose as much as 11.11% during the session before briefly retreating, then ended the day up 12.34% at 52,800 KRW. The rise is attributed to expectations of increased government support for the medical AI sector.

Lunit CEO Seo Beom-seok was the only representative from a medical AI company to attend the “AI Global Partnership Meeting” held on June 20, where he met President Lee Jae-myung. During the meeting, he reportedly requested government support for securing AI training data.

Access to high-quality data is critical for AI companies. Lunit’s cancer screening AI solution, Lunit INSIGHT, leverages deep learning on X-ray, CT, and MRI images to assist in detection and supplement human visual limitations. To improve the product’s quality, access to quality imaging data is essential.

Given that President Lee previously pledged to invest 100 trillion KRW into fostering the AI industry during his campaign, expectations are high for more active government support for companies like Lunit.

A Lunit official stated, “Investor expectations for potential policy support from the government likely contributed to the stock price increase.”

NatureCell Up on News of U.S. Access for ‘JointStem’

NatureCell’s stock rose 6.22% to close at 29,900 KRW. The rise followed news that its degenerative osteoarthritis stem cell treatment, JointStem, can now be administered to U.S. patients.

According to Nature Cell on the 23rd, the company received FDA Acknowledgement for its Expanded Access Program (EAP) protocol for JointStem on June 9. The EAP allows unapproved treatments to be provided free of charge to patients with serious or life-threatening diseases lacking existing treatment options.

With FDA Acknowledgement, Nature Cell will be able to start submitting EAP applications by the end of this month. Although JointStem has not yet received FDA approval, it may now be used on patients in the U.S. under the EAP framework.

However, this does not mean it will be immediately available to all patients across the U.S. Each administration must be approved through FDA review, either on an institutional or patient-specific basis.

An industry official explained, “Expanded access requires applications from institutions or physicians. FDA Acknowledgement does not equate to immediate nationwide availability.”