pharm edaily

[NA Eun-kyung, Edaily Reporter] South Korean biotech stocks fell Friday despite the easing of political uncertainty following the impeachment of former President Yoon Suk-yeol, as investor focus shifted to looming tariff risks in the pharmaceutical sector.

While shares linked to presidential hopefuls―including figures like Lee Jae-myung and Han Dong-hoon―saw gains, most pharmaceutical and biotech stocks underperformed amid concerns over potential U.S. trade measures on drug imports.

Healthcare indexes fall across the board

According to MP Doctor by KG Zeroin, the KRX Healthcare Index closed at 3,709.39, down 0.37% from the previous session. The KRX 300 Healthcare Index dropped 0.50% to 3,343.85, and the KRX Bio Top 10 Index fell 1.19% to 2,302.95. The Kospi 200 Healthcare Index also lost 1.15% to close at 1,971.44.

The only bright spot was the Kosdaq 150 Healthcare Index, which rose 0.69% to 4,420.44, supported by gains in Peptron, Voronoi, and CHA Biotech.

Investors had expected healthcare stocks to rebound following the impeachment ruling, but comments by former U.S. President Donald Trump the previous day dampened sentiment. Trump said he would announce new tariffs targeting the pharmaceutical sector, raising concerns about future export barriers for Korean drugmakers.

‘Han Dong-hoon themed stocks’ rally

Dt&CRO, widely regarded as a “Han Dong-hoon-themed stock,” hit its daily limit to close at 7,410 won. Its parent company, Dt&C, rose 8.97%.

Recent stock performance of Dt&CRO(Source: KG Zeroin MP Doctor)

Dt&CRO, a contract research organization, is linked to Han due to its outside director Lee Sung-kyu, a classmate of the former justice minister at Seoul National University Law School and Columbia Law School. Lee, a partner at the law firm HwaWoo, was recently reappointed to Dt&CRO’s board.

“There was no specific issue that drove today’s stock movement,” a Dt&CRO spokesperson said. “However, we recently opened a PK/PD center and brought in several high-level executives from global pharmaceutical firms earlier this year.”

Among the new hires is Chief Strategy Officer Lim Yoon-ah, who previously worked at GSK, Sandoz, and Abbott. She is now leading the company’s integrated nonclinical-clinical strategy and global expansion efforts.

Dt&C Biogroup plans to co-host an investor relations event on June 17 in Boston with its U.S. partner Radius Research, aiming to connect Korean biotech startups with major American venture capital firms.

Another Han Dong-hoon-linked stock, NOUL, gained 7.61% to close at 2,970 won. The diagnostics company is tied to Han through its outside director Lee Sun-ji, who shares academic and professional ties with the former minister, including time at Kim & Chang law firm and Columbia Law School.

‘Lee Jae-myung linked stock’ sees wild swings

Shares of Orient Bio, considered a “Lee Jae-myung-themed stock,” tumbled 7.59% to 1,862 won after a volatile session. The stock surged to 2,500 won immediately following the impeachment ruling at 11:30 a.m., before falling back.

Trading volume for Orient Bio exceeded 86 million shares, the highest among Kospi-listed firms excluding funds.

The company, a subsidiary of Orient Watch, operates in biomedical research, lab equipment, and drug development. It became associated with Lee, leader of the Democratic Party, due to his past employment at an Orient Watch factory.

Orient Bio is developing OND-1, an injectable hair loss treatment with a new mechanism of action. The company claims the product showed significantly higher efficacy in preclinical animal trials with lower toxicity than existing treatments like Propecia and Minoxidil.

However, the project remains in the preclinical stage, and analysts say it is too early to gauge whether the company can rise above “theme stock” status. In January, Orient Bio signed a contract for primate toxicity studies as part of its preclinical development for OND-1.