[THE INVESTOR] Analysts are expecting Korean biotechnology and pharmaceutical stocks to gain momentum from this month with an upcoming international academic conference where the firms will present their latest clinical data of drug candidates.
Hit by market concerns over a probe by financial authorities into their accounting rules regarding their research and development expenses, related industry stocks have taken a severe beating in the past few months.
Korea Exchange’s health care index, which is comprised of major bio stocks on the KOSPI and KOSDAQ markets hit a record low on July 25 plunging by 25 percent.
But analysts say the worst is over.
Solid first-half earnings, coupled with hints by the regulator that there would be no serious punishments on the bio and pharma companies, and positive clinical results are expected to clear ways for the sector’s recovery.
“Investor confidence will bounce back as international medical events including the World Conference on Lung Cancer are set to kick off,” Sun Min-jung, an analyst at Hana Financial Investment.
Below are some of the catalysts that could drive the sentiments back up in the coming weeks.
Hanmi Pharmaceutical’s partner US biotech Spectrum Pharmaceuticals will present interim data from phase 2 clinical study of poziotinib at the World Conference on Lung Cancer in Toronto on Sept. 25.
Poziotinib, which was in-licensed from Hanmi, is a pipeline candidate for non-small cell lung cancer with exon 20 insertion mutation in epidermal growth factor receptor (EGFR), or human epidermal growth factor receptor 2 (HER 2).
Genexine will release updated phase 2 data on HyTropin, its long-acting drug for growth hormone deficiency at the European Society for Pediatric Endocrinology, to be held Sept. 27-29, in Athens, Greece.
The company will make a presentation on the 12-month efficacy results of HyTropin as a bi-weekly therapy to treat lack of production of growth hormone in adults.
According to research and consulting firm GlobalData, long-acting growth hormones will eventually replace daily growth hormones, and will capture more than half of the latter’s patient share by the end of 2026.
HanAll Biopharma will unveil clinical efficacy findings of HL036, its anti-tumor necrosis factor ophthalmic solution candidate for dry eyes at the annual Ophthalmology Innovation Summit, which is slated for Oct. 25 in Chicago, US.
Having wrapped up analysis of its phase 2 clinical data of HL036 on 150 patients, the company will release the top line data from the study which met the primary and key secondary endpoints.
“Following the positive results, we plan to initiate phase 3 studies later this year or early next year,” a company official told The Investor.
By Park Han-na (email@example.com)