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[Yu Jin-hee, Edaily Reporter] SEOUL, South Korea-On September 8, undervalued pharmaceutical, biotech, and medical device companies demonstrated their strength in the Korean stock market, proving their worth through earnings momentum. The day’s standout players were Meta Biomed, spotlighted for “profitability,” L&C Bio, gaining traction as a “K-beauty” leader, and L&K Biomed, drawing investor attention through “global partnerships.”

Recent stock price trend of L&C Bio. (Source: KG Zeroin MP Doctor)

L&C Bio Soars for Third Consecutive Session with Double-Digit Gains

According to KG Zeroin’s MP Doctor (formerly Market Point), Meta Biomed, L&C Bio, and L&K Biomed ranked among the top 15 gainers, rising 26.33% (closing at 6,670 won), 17.91% (49,700 won), and 17.60% (9,220 won), respectively, compared with the previous session.

L&C Bio, in particular, has posted gains for five straight trading days, including three consecutive sessions of double-digit growth-an exceptional performance underscoring the resilience of the biotech sector. Despite its relatively low price level under 50,000 won, continued earnings momentum and its recognition as a major K-beauty stock suggest strong investor interest through the remainder of the year.

The company’s recent success is anchored by Ellabie Ritwo, a skin booster launched domestically in February. Ritwo replenishes key extracellular matrix (ECM) components-including collagen, elastin, fibronectin, laminin, tenascin, growth factors, and matrix metalloproteinases (MMPs)-to stimulate cell regeneration. Its primary raw material, human acellular dermal matrix (hADM), has been approved by the Ministry of Food and Drug Safety.

Although it initially struggled in a crowded market, Ritwo has recently experienced surging demand, even leading to shortages as word-of-mouth spread. On September 5, a Daegu-based dermatologist posted on social media about “Ritwo being sold out,” a message that resonated online and helped fuel the stock’s rally.

Currently sold in Korea and Singapore, Ritwo’s first-year sales target of 3 billion won has already been revised upward. Analysts expect exports to expand across Southeast Asia next year, pushing Ritwo sales alone beyond 10 billion won-a conservative estimate given the company’s plan to double its current 1,000 client accounts to more than 2,000 by year-end.

To meet soaring demand, L&C Bio has begun construction on additional Ritwo manufacturing facilities, aiming for regulatory approval by the end of the year. “Sudden demand growth has left some hospitals short on inventory, but we already have ample production capacity and will further expand facilities,” an L&C Bio spokesperson said.

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

Meta Biomed and L&K Biomed Offer Stable Growth Outlooks

Meta Biomed’s share price was buoyed by expectations of continued earnings growth in its core dental and surgical suture businesses.

Eugene Investment & Securities analyst Jongseon Park wrote in a report that “Meta Biomed is trading at 7.6 times this year’s expected earnings, significantly discounted compared with the domestic industry average PER of 20.9.” He added, “The dental division should deliver stable sales growth through global market share expansion and new product launches, while the suture division is positioned for high growth with ongoing capacity expansion amid global shortages.”

The suture division accounted for 45.2% of company sales in 2024, posting a four-year CAGR of 28.2% from 2021 to 2024. Eugene Investment forecasts Meta Biomed’s 2025 consolidated revenue at 110.3 billion won, with operating profit of 26.5 billion won-year-over-year increases of 17.2% and 53.7%, respectively.

Meanwhile, L&K Biomed, a spinal implant maker, gained on news of ongoing partnership discussions with global companies. The firm aims to surpass 50 billion won in annual revenue, up from 19.8 billion won in 2022, 29.9 billion won in 2023, and 36.1 billion won in 2024. “We are executing diverse strategies to expand our global distribution network, including practical discussions with international partners on supply chain management,” an L&K Biomed representative said.