SLS Bio, Keeps Pharma Surge to Limit; Growing Demand for Obesity Drug ahead of Summer[K-Bio Pulse...

[Kim Saemi, Edaily reporter] Shares of SLS Bio and Keeps Biopharma Inc. hit their upper trading limits on 9th May, BLUEMTEC CO., LTD. also posted strong gains, as investor interest surged in obesity-related biotech stocks ahead of summer. Analysts say the rising attention reflects seasonal demand for weight-loss treatments. Meanwhile, artificial intelligence (AI) stocks including Pharos iBio Co., Ltd.(Pharos) also jumped amid optimism over Democratic presidential candidate Lee Jae-myung’s AI policy agenda.

SLS Bio, Keeps Biopharma rally as Wegovy-linked stocks gain traction

According to MP Doctor, a market tracker operated by KG Zeroin, SLS Bio closed at 2,115 won, up 29.99%, while Keeps Biopharma jumped 29.98% to end at 12,790 won.

SLS Bio and Keeps Biopharma surged to their daily price ceilings on May 9, leading gains among bio-healthcare stocks on the KOSDAQ. (Source=KG Zeroin MP Doctor)

Both companies are tied to the obesity treatment theme. SLS Bio is involved in the quality control of Wegovy, a so-called “dream” weight-loss drug, while BlueMTech, which rose 12.13% Thursday, handles its domestic distribution.

Wegovy has seen more than 28,000 prescriptions in South Korea just 1½ months after its launch. BluePharm Korea, a unit of BlueMTech, generated about 6 billion won ($4.4 million) in distribution revenue in April, marking a 500% increase from the previous month. Sales from existing customers rose 33%, and the number of new customers increased 58%.

Keeps Biopharma drew investor attention as the only publicly listed Korean company conducting primate trials for an oral obesity drug. StunninValue Research described the firm as a key player in the oral peptide obesity treatment market, which has attracted interest from global pharmaceutical companies. Worldwide, only Novo Nordisk, Viking Therapeutics and South Korea’s D&D Pharmatech are known to be conducting similar clinical trials.

Keeps Biopharma is expected to release primate trial results next month. The company changed its name from KP to KipsBioPharma after its March 28 shareholders meeting to emphasize a shift toward pharmaceutical and biotech operations.

An SLS Bio official declined to comment on the stock’s surge. One industry insider said, “As summer approaches, demand for Wegovy is expected to grow even more.”

TiumBio eyes larger licensing deals with Merigolix expansion

TiumBio Co., Ltd. rose 13.65% to close at 6,160 won. The stock has climbed 51.22% over the past month following an announcement from its domestic partner Daewon Pharmaceutical that Merigolix (DW-4902) had met its primary endpoint in a Phase 2 clinical trial for uterine fibroids.

The drug, which had already shown efficacy in treating endometriosis, is now being positioned for broader use in the global uterine fibroid treatment market. According to Global Market Insights, the global market for uterine fibroid treatments was valued at 2.5 trillion won ($1.8 billion) in 2022 and is projected to grow to 6.6 trillion won ($4.9 billion) by 2032 ? a market larger than that for endometriosis.

“Merigolix has shown outstanding results in both endometriosis and uterine fibroids,” said TiumBio CEO Kim Hoon-taek. “Having secured both efficacy and safety in the high-bar Phase 2 trial, we plan to expand development into the global uterine fibroid market.”

Pharos iBio rises on AI policy optimism, Nvidia connection

Political-themed stocks are also rallying as the June 3 presidential election nears. Shares of Polaris AI Pharma and Mind AI both hit their daily trading limits Thursday following expectations tied to Lee Jae-myung’s AI platform. In the healthcare sector, Pharos iBio soared 23.71% to 7,670 won.

Pharos iBio, which went public in July 2023, develops drugs using AI. The company attracted interest thanks to its affiliation with Nvidia, which launched its BioNeMo AI drug development platform last year. Pharos iBio joined Nvidia’s Inception startup program in 2023 and gained access to BioNeMo, which it is now using to enhance its proprietary AI platform, Chemiverse.

The U.S. Food and Drug Administration plans to introduce AI across all departments starting June 30, after completing a pilot program using generative AI. The agency aims to accelerate the drug review process through this initiative.

“AI healthcare stocks are already on the rise in the United States,” one industry source said. “It’s time to start paying attention to domestic firms, too.”

OrganoidScience gains 52% on KOSDAQ debut

Shares of OrganoidScience, which debuted on the KOSDAQ on 9th May, closed at 32,000 won, up 52.38% from the IPO price of 21,000 won. The company develops regenerative and cancer therapies using stem cell and organoid technologies. It is considered a potential beneficiary of the FDA’s recent decision to eliminate animal testing requirements.