[Edaily Reporter Hong Ju-yeon] On the 17th, the domestic pharmaceutical and biotech sector saw related stocks rally across the board following news that the government is considering expanding health insurance coverage for hair loss treatments. In response to the government’s policy to publicly recognize hair loss as a medical condition requiring treatment rather than a cosmetic issue, #JW Pharmaceutical hit its daily price limit, while #Olix and #L&C Bio also posted strong gains. #D&D Pharmatech surged during the trading session on news of a joint new drug development project with LG AI Research.

JW Pharmaceutical Emerges as a Leading Beneficiary of the Hair Loss National Health Insurance Theme

According to KG Zeroin MP DOCTOR

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JW Pharmaceutical closed at 2,335 won today

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up 537 won (29.87%) from the previous trading day. This is believed to be due to the government’s remarks regarding the review of expanding health insurance coverage for hair loss treatments. Previously, President Lee Jae-myung referred to hair loss as a “matter of survival” for young people and directed a review of health insurance coverage. Health and Welfare Minister Jeong Eun-kyung announced at a press briefing on the 11th that the government would push for expanded coverage through public consultation in the second half of this year.

JW Pharmaceutical has a lineup of hair loss treatments that includes oral medications such as “Monad Tablets” (containing finasteride) and “Dutamoa Tablets” (containing dutasteride), as well as the topical treatment “Rogaine Foam.” There are expectations that if these treatments, which were previously prescribed as non-covered services, are added to the coverage list, this will simultaneously reduce the financial burden on patients and increase prescription volumes. “JW0061,” a topical candidate drug based on the GFRA1 agonist mechanism—a key pipeline candidate—received approval for a Phase 1 clinical trial in February of this year.

However, it remains uncertain whether health insurance coverage will be granted, given the ongoing political debate surrounding the issue. On the 16th, Kim Mi-ae, Senior Deputy Floor Leader for Policy of the People Power Party, criticized the proposal, asking, “There are patients and their families struggling day by day with cancer, rare diseases, and severe illnesses—should ‘M-shaped’ hair loss take priority over them?” Lee Jun-seok, leader of the Reform Party, also raised concerns about vote-buying, stating, “Health insurance is not a handout that politicians use to show off,” in response to the decision to limit coverage to young adults.

Olix Benefits as a Hair Loss Stock… Expectations Rise on News of Bio USA Participation

Olix closed at 142,000 won

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up 12,700 won (9.82%) from the previous trading day. This is believed to be due to improved investor sentiment following news of the clinical progress of “OLX104C,” an RNA interference (RNAi)-based hair loss treatment candidate, as well as the company’s upcoming participation in the “Bio International Convention 2026” (Bio USA), which begins on the 22nd in San Diego, USA.

OLX104C is an RNA-based candidate administered via intradermal injection into the scalp that targets the androgen receptor. The company has completed the first patient dosing in a Phase 1b/2a clinical trial in Australia involving patients with androgenetic alopecia. At this year’s Bio USA, the company plans to engage in full-scale discussions with global pharmaceutical companies regarding technology transfer and business development, focusing on its key pipeline candidates—including the obesity treatment “OLX501A” and the age-related macular degeneration treatment “OLX301A”—as well as its proprietary RNAi platform, “OASIS.”

Lee Dong-ki, CEO of Olix, said, “This Bio USA event will be an important opportunity to directly present Olix’s core data and platform capabilities to global pharmaceutical and biotech companies and to solidify the potential for substantive collaboration.”

L&C Bio Announces Expansion of ECM Skin Booster Application to Hair Loss Treatment

L&C Bio closed the main session at 86,300 won

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up 8,100 won (10.36%) from the previous trading day. News that the company plans to expand the application of its extracellular matrix (ECM) skin booster “Re2O” to the field of hair loss treatment drove the stock price higher. Unlike existing oral treatments, which focus on regulating androgen signaling or extending the hair growth cycle, Re2O is considered distinctive for its regenerative medicine approach that directly improves the ECM environment of the scalp tissue surrounding hair follicles.

On the 13th, a workshop on Re2O scalp treatments using L&C Bio’s injection platform, “i-Jet,” was held at the “Practical Hair Loss Academy” organized by the Korean Society of Dermatology, Obesity, and Aesthetic Surgery. Dr. Kim Ji-hyun of Yonsei Midain Clinic, who served as a speaker, explained, “The ultimate goal of hair loss treatment is not simply to thicken the hair, but to restore an environment where hair follicles can remain healthy,” adding, “ECM regeneration could serve as a new therapeutic approach to normalize the tissue surrounding hair follicles.”

In this regard, an L&C Bio official said, “Interest in regenerative medicine-based approaches is growing even in the hair loss treatment market,” adding, “Based on its ECM technology accumulated in the field of skin regeneration, Litou is presenting new possibilities in the areas of scalp and hair loss treatment as well.”

D&D Pharmatech Partners with LG to Jointly Develop New Peptide Drug

D&D Pharmatech closed at 108,100 won in regular trading, up 16,500 won (18.01%) from the previous trading day. At one point during the session, the stock traded as high as 116,600 won, up 27.29%. News that the company had signed a formal agreement with LG AI Research to jointly develop next-generation oral peptide drugs drove the stock price higher.

Under the agreement signed on the 16th, LG AI Research will utilize its proprietary generative AI, “ExaOne,” to analyze the structures of proteins responsible for diseases and design optimal peptide sequences and new drug candidates. D&D Pharmatech will be responsible for the structural design, synthesis, and evaluation of the candidate compounds derived by the AI, and plans to carry out preclinical and clinical development through to global regulatory approval.

Lim Woo-hyung, Co-Director of LG AI Research, said, “This collaboration goes beyond a simple technology transfer; it is a process of creating bio-specialized AI that solves the complex challenge of new drug development using AI.”

Lee Seul-ki, CEO of D&D Pharmatech, said, “By combining LG AI Research’s world-class AI capabilities and data-driven learning expertise with D&D Pharmatech’s experience in peptide development, we will revolutionize the efficiency of AI-based drug discovery.” She added, “We will demonstrate our technological leadership in the field of oral peptides, including macrocyclic peptides, in the global market.”