AACR Rally Fades in a Day as Biotech Sentiment Weakens[K-Bio Pulse]

[Kim Saemi, Edaily Reporter] The biotech and healthcare sector broadly declined on April 21, with several companies that had risen the previous day on data releases at the American Association for Cancer Research Annual Meeting (AACR) giving back gains.

Top Declining Stocks on KOSDAQ (April 21) (Source: MP DOCTOR)

AACR effect fades in a day…"Stocks fall despite solid data"

Many of the biggest decliners were companies that participated in AACR. Y-Biologics Inc. posted the steepest drop (-14.03%), followed by Genome&Company, Inc. (-13.25%), AbClon Inc. (-12.72%), Voronoi, Inc. (-10.07%), and Rznomics Inc. (-7.87%), indicating broad weakness among AACR participants.

According to KG Zeroin's MP DOCTOR (formerly Market Point), Y-Biologics closed at 23,600 won, down 3,850 won (14.03%) from the previous session.

Y-Biologics presented preclinical data at AACR on its Multi-AbKine platform, including the PD-1×VEGF×IL-2v trispecific antibody AR170 and PD-1×LAG-3×IL-2v trispecific antibody AR166. It also disclosed results from its core IL-2v screening technology.

The company said it could not identify a clear reason for the sharp decline. "There were no specific issues that would justify the drop. It seems to be a combination of factors," a company official said.

Genome&Company is scheduled to present a poster on April 21 (local time) at AACR featuring preclinical data for its bispecific antibody drug conjugate (ADC) GENB-120 targeting ITGB4 and TROP2.

The company also appeared caught off guard by the share price drop ahead of the data release. "Overall biotech investor sentiment seems weak. There are no company-specific issues," a company official noted.

Despite releasing positive data at AACR, AbClon, Voronoi, and Rznomics also failed to avoid declines. AbClon presented results on its bispecific antibody AM109 and its next generation solid tumor platform, switchable CAR-T (zCAR-T; projects AT501 and AT502).

Voronoi disclosed mechanism-of-action data and Phase 1 results for its HER2-targeted therapy VRN10, while Rznomics delivered an oral presentation of interim Phase 1/2a data for its RNA-based anticancer therapy RZ-001 in hepatocellular carcinoma (HCC). Voronoi and Rznomics had risen the previous day but turned lower.

An industry source said, "The AACR effect seems to have faded quickly. A reversal in sentiment will likely require tangible licensing deals." Another added, "Funds appear to be flowing into secondary batteries, leaving biotech relatively sidelined."

ROKIT Healthcare Share Price Trend on April 21 (Source: MP DOCTOR)

ROKIT Healthcare faces scrutiny over undisclosed core technology

Shares of ROKIT HEALTHCARE Inc. closed at 92,300 won, down 7,300 won (7.33%) from the previous day. The decline is believed to have been influenced by a pre-released premium article from Edaily's biotech subscription service.

At 8:10 a.m., Edaily's premium platform PharmEdaily published an article titled, "Stock surged on 'complete hair regrowth,' but core technology undisclosed…Concerns over a second SAM CHUN DANG PHARM. CO., LTD. case."

The report stated that the core technology behind ROKIT Healthcare's hair loss treatment was still at the provisional patent application stage. A provisional application is a means of securing an early filing date, requiring a full application within a set period to obtain patent rights.

ROKIT Healthcare's shares were weak from the market open. At 11:13 a.m., the company issued an official statement addressing its hair restoration technology.

According to the statement, the term "four week hair regrowth" refers to early biological responses observed in a subset of patients and does not apply universally but rather emphasizes the potential for fundamental treatment. Regarding intellectual property the company said it is withholding disclosure of core technologies until global patent protection is secured.

"Given the nature of the biotech industry, even minor leakage of core mechanisms could lead to imitation by competitors and threaten a company's survival," the company stated. "We will disclose details transparently via filings or press releases once IP protection is complete."

However, skepticism remains. An industry insider noted "If a provisional patent has been filed, it means the core concept is already under legal protection. The inability to provide even a basic direction may suggest that the technological differentiation is not clearly established."