[Edaily Reporter Minji Son ] On the 19th, among domestic pharmaceutical and biotech stocks, the share prices of Innosys(056090), #SAMIK PHARM. Co., LTD., and JW SHINYAK CORPORATION(067290)rose significantly. CG MedTech hit its daily price limit, buoyed by news that its largest shareholder, C-G Bio, was selling its controlling stake, while SAMIK PHARM. Co., LTD. and JW SHINYAK CORPORATION—both considered “hair loss stocks”—soared as discussions regarding the government’s expansion of health insurance coverage for hair loss treatments gained momentum.

CG MedTech Soars on Expectations of a 2 Trillion Won Valuation for Sijibio

On that day

,

CG MedTech closed at 1,618 won, up 29.96% (373 won) from the previous trading day. The stock price appears to have been driven up by news that its largest shareholder, the regenerative medicine company C-G Bio, is set to be acquired by the domestic private equity fund (PEF) IMM Private Equity (PE).

According to investment banking (IB) industry sources, IMM PE is in discussions with Yoon Jae-seung, Chief Vision Officer (CVO) of DAEWOONGPHARMACEUTICAL and the major shareholder of SG Bio, to acquire a 51% stake for 5610억 원. If negotiations proceed smoothly, a share purchase agreement (SPA) is expected to be signed sometime next week.

The two sides have also signed a conditional sales agreement stipulating that if C-G Bio’s annual earnings before interest, taxes, depreciation, and amortization (EBITDA) reaches 100 billion won—double its current level—the remaining 28.1% stake will also be traded for 561 billion won. Consequently, if the put option is exercised, C-G Bio’s enterprise value could rise from its current level of 1.1 trillion won to as high as 2 trillion won.

The market views this as a revaluation of CG MedTech, a subsidiary of SG Bio, following the recognition of SG Bio’s high enterprise value. CG MedTech is a manufacturer of spinal and dental implants and owns the dental implant brand Urudente. Recently, the company has also been expanding its contract development and manufacturing organization (CDMO) business. It is accelerating its business diversification by recently signing a CDMO contract with KOLON CORPORATION for the development, production, and supply of human tissue-based skin booster products.

SAMIK PHARM.

Co

., LTD. Rises on Expectations of Expanded National Health Insurance Coverage for Hair Loss Treatment SAMIK PHARM.

Co

.

, LTD. closed at 8,410 won, up 29.98% (1,940 won) from the previous trading day. This is interpreted as buying interest flooding into SAMIK PHARM. Co., LTD.—considered a leading

“hair loss

stock”—as the government begins serious discussions on

expanding national health insurance

coverage for

hair loss

treatments.

The inclusion of hair loss treatments under national health insurance was a campaign pledge made by President Lee Jae-myung during the 2022 presidential election. Subsequently, during a Ministry of Health and Welfare briefing last December, President Lee referred to hair loss among young people as a “matter of survival” and ordered a review of its inclusion in the national health insurance coverage.

Minister of Health and Welfare Jeong Eun-kyung also announced at a press briefing on the 11th that the government would push to expand health insurance coverage for hair loss treatments by gathering public input in the second half of the year. The Ministry of the Interior and Safety and the Ministry of Health and Welfare plan to hold on-site forums next month to advance these discussions.

Earlier this year, SAMIK PHARM. Co., LTD. registered a patent for a long-acting injectable platform based on the JAK inhibitor baricitinib, which can be used to treat alopecia areata. This platform converts the oral form of baricitinib into a long-acting injectable formulation administered once a month.

However, the company took a cautious stance regarding whether it would actually benefit from this. A SAMIK PHARM. Co., LTD. official stated, “If developed as an injectable, there are aspects that could be highlighted in terms of convenience,” but added, “While there are aspects that could be highlighted in terms of convenience if developed as an injectable, it is currently in the research and development stage and is being pursued as a mid- to long-term project; it will take a considerable amount of time to reach commercialization.”

JW SHINYAK CORPORATION Also Rebounds Amid the ‘Hair Loss Stock’ Boom JW SHINYAK CORPORATION

closed at 2,335 won, up 13.08% (270 won) from the previous trading day. After surging 29.87% to hit the daily price limit on the 17th, the stock fell 11.56% the following day but rebounded again today.

JW SHINYAK CORPORATION is also considered a leading hair loss-related stock, alongside SAMIK PHARM. Co., LTD. JW SHINYAK CORPORATION has seven hair loss treatments in its portfolio, including “Monad Tablets” containing finasteride, “Dutamoa Tablets” containing dutasteride, and “Rogaine Foam,” a minoxidil formulation.

A JW SHINYAK CORPORATION official explained, “Because we have finasteride and dutasteride products, we’ve been cited as a leading hair loss stock whenever related issues arise,” adding, “The fact that we supply our products primarily to clinics and specialized hair loss clinics is also one of the reasons we attract investor interest.”