[Edaily Reporter Na Eun-kyung] On the 5th, domestic pharmaceutical and biotech stocks showed a rare simultaneous surge. As investor sentiment flocked to artificial intelligence (AI)-related stocks following the visit to South Korea by Jensen Huang, CEO of NVIDIA, #ParosIBio surged as its past ties with NVIDIA were brought back into the spotlight.

#CoreLineSoft, a medical AI company, saw its stock price rise by double digits on expectations of market expansion in the European lung cancer screening sector. #DaewonPharm recorded the only price limit-up among KOSPI-listed companies that day as preclinical results for its next-generation obesity treatment gained attention.

Expectations of benefiting from European lung cancer screening drive CoreLine Soft’s strong performance

According to KG Zeroin MP Doctor (formerly Marketpoint), CoreLine Soft showed

strong performance

on the 5th, rising 13.96% from the previous day to close at 3,225 won. Analysts attribute this to the article titled “CoreLine Ranks Among Top in European Lung Cancer Screening AI Evaluation… Expectations for Benefits from German National Screening Program,” which was first released as premium content on Pharm E-Daily on the 30th of last month and made publicly available for free on this day.

CoreLine Soft’s lung cancer screening AI solution, “AVIEW LCS,” was recently evaluated in a comparative study published by European Radiology as the product line supporting the widest scope of applications among 16 CE-certified lung cancer screening AI products. European Radiology is a leading academic journal published by the European Society of Radiology (ESR) and is ranked among the top-tier (Q1) international journals in the field of radiology.

In particular, the solution garnered attention for offering a wide range of features necessary for operating national lung cancer screening programs, including growth assessment, malignancy prediction, and structured reporting, beyond simple lung nodule detection. In the European national screening market, there is a growing trend where actual screening operational capabilities are becoming more important than accuracy competition.

Germany’s decision last April to incorporate low-dose computed tomography (CT)-based lung cancer screening into its national health insurance system is also seen as a positive factor. CoreLine Soft has already surpassed last year’s total order volume by signing new supply contracts with 11 medical institutions in Germany in the first quarter of this year alone. The company is also recognized for its competitive edge in securing top-tier European medical institutions, such as Charité Hospital and Heidelberg University Hospital, as clients.

A CoreLine Soft official emphasized, “The proportion of overseas sales has exceeded 60% for the first time, and the share of recurring revenue has expanded to 49%.” They added, “As the competitive benchmark in the global medical AI market shifts from accuracy to operational experience, the fact that eView LCS has demonstrated a broad scope of lung cancer screening capabilities will further strengthen the company’s national screening strategy in Europe.”

Aiming to be

the ‘Next Wegovy’… Daewon Pharmaceutical’s New Obesity Drug Gains Attention

Daewon Pharmaceutical also saw investor sentiment boosted by preclinical data for its obesity treatment released the previous day, closing at 11,240 won—the daily price limit (29.94%).

Daewon Pharmaceutical will present preclinical results for a quadruple-action agent based on glucagon-like peptide (GLP)-1, gastric inhibitory peptide (GIP),glucagon (GCG), and gastrin-based quadruple agonist currently under joint development with Pharmus Bioscience.

This candidate drug is a next-generation pipeline that aims to simultaneously achieve the weight loss effects of existing GLP-1-based obesity treatments, as well as pancreatic beta cell protection and improved renal function.

According to the preclinical results, in a diet-induced obese mouse model, body weight decreased by up to 50% or more compared to the control group within 22 days of administration, and fasting blood glucose levels also decreased significantly.

This candidate compound is a follow-up achievement of a project for which Daewon Pharmaceutical acquired technology from Pharmus Bioscience in 2023. Farmus Bioscience is a new drug development company founded by CEO Yang Jae-sung, who previously led metabolic and endocrine research at Dong-A ST. The company is developing new drugs for obesity, neuropathic pain, and inflammatory bowel disease (IBD) based on multi-active peptide technology.

Pharos Becomes a ‘Jensen Huang Thematic Stock’… But How Much Will It Actually Benefit from NVIDIA?

The hottest stock in the market today was Pharos iBio, an AI-driven new drug development company, which rose 24.13% from the previous day to close at 7,820 won. Recently, the Korean stock market has seen a phenomenon known as “Jensen Huang theme stocks,” where related stocks surge merely based on CEO Jensen Huang’s remarks or his visit to Korea. It appears that Pharos was also classified as a Jensen Huang theme stock.

In April 2023, Pharos iBio became the first domestic AI-driven new drug development company to be approved as a member of “NVIDIA Inception,” NVIDIA’s startup support program. At the time, the company garnered market attention as it was reported to be eligible for access to BioNeMo—NVIDIA’s AI platform for life sciences—as well as technical support and cloud infrastructure benefits.

However, it is important to note that selection as an Inception Program member does not necessarily imply an investment from NVIDIA or a certification of the company’s technological capabilities. According to NVIDIA, the Inception Program is an ecosystem support program for AI startups and is not a system through which NVIDIA officially certifies a specific company’s technological capabilities or business viability. In fact, eligibility for the program is open to any startup that meets certain requirements, such as being less than 10 years old, having developers on staff, and being a registered corporation.

Notably, Pharos iBio is currently not a member of the NVIDIA Inception Program. Since NVIDIA excludes publicly listed companies from the program, it is presumed that Pharos iBio’s membership status ended following its KOSDAQ listing in 2023.

Market experts also advise that investors should focus on actual business performance rather than mere connections with NVIDIA. Kim Doo-eon, an analyst at Hana Securities, emphasized in a recent report, “What matters is not who meets with Jensen Huang, but who can generate recurring revenue within the NVIDIA ecosystem,” adding, “When it comes to Jensen Huang events, you should buy order forms, not just photos.”

A representative from Pharos iBio stated regarding the status of collaboration with NVIDIA, “There is nothing we can officially comment on.”