[Min Ji-Son, Edaily Reporter] On June 19, shares of South Korean medical device maker Cg MedTech surged to the daily upper limit on Thursday following reports that its parent company, regenerative medicine specialist CGBio, could be acquired by a private equity firm at a valuation that may eventually reach 2 trillion won.

Meanwhile, stocks related to hair loss treatments continued their rally as discussions regarding the expansion of national health insurance coverage for alopecia treatments gained momentum under the new administration.

Among the session’s biggest gainers were Samik Pharmaceutical and JW Shinyak, both widely viewed by local investors as beneficiaries of potential policy support for hair-loss therapies.

Cg MedTech surges on CGBio buyout talks

Cg MedTech closed 29.96% higher at 1,618 won, hitting the daily limit-up.

The rally followed reports that domestic private equity firm IMM PE is in talks to acquire a 51% stake in CGBio from its largest shareholder, Yoon Jae-seung, chief vision officer of Daewoong Pharmaceutical.

According to investment banking sources, the parties are discussing a deal valued at 561 billion won for the controlling stake, with a share purchase agreement potentially being signed as early as next week.

The transaction reportedly also includes a conditional agreement covering an additional 28.1% stake. If CGBio doubles its annual EBITDA to 100 billion won, the remaining shares could be sold at the same valuation, potentially raising the company’s enterprise value from around 1.1 trillion won to nearly 2 trillion won.

Investors appeared to view the deal as validation of CGBio’s growth potential, prompting a reassessment of the value of its listed subsidiary.

Cg MedTech develops spinal and dental implants and owns the dental implant brand Urudente. The company has also been expanding into contract development and manufacturing (CDMO) services. Earlier this year, it signed a CDMO agreement with Kolon Pharma for the development and production of a human tissue-based skin booster product.

Samik Pharmaceutical hits limit up on hair loss policy momentum

Samik Pharmaceutical climbed 29.98% to 8,410 won, also reaching the daily upper limit.

The surge came as the government intensified discussions on expanding national health insurance coverage for hair loss treatments, a policy that has garnered growing public attention in recent years.

The proposal was initially floated by President Lee Jae-myung during his 2022 presidential campaign. He later described youth hair loss as a “quality-of-life issue” and called for a review of insurance coverage.

Health and Welfare Minister Jung Eun-kyeong recently stated that the government plans to gather public feedback in the second half of the year before pursuing broader reimbursement measures. Public discussions involving the Ministry of Health and Welfare and the Ministry of the Interior and Safety are expected to take place next month.

Investor interest was further bolstered by Samik Pharmaceutical’s intellectual property portfolio. Earlier this year, the company obtained a patent for a long-acting injectable platform based on the JAK inhibitor baricitinib, which is being developed as a once-monthly treatment for alopecia.

The company, however, cautioned against overly optimistic expectations. “Development remains at an early stage, and commercialization will require considerable time,” a company official said.

JW Shinyak rebounds as hair loss theme gains traction

JW Shinyak rose 13.08% to 2,335 won.

The stock had previously surged nearly 30% on July 17 before pulling back more than 11% in the following session. Thursday’s rebound reflected renewed investor interest in hair-loss-related stocks.

JW Shinyak markets a broad portfolio of alopecia treatments, including Monade tablets containing finasteride, Dutamoa tablets containing dutasteride, and Rogaine Foam, a minoxidil-based product.

A company official said the stock has long been viewed as a leading play in the hair-loss sector due to its established product lineup and strong presence in dermatology clinics and specialty hair-loss treatment centers.

As policy discussions continue, investors appear to be positioning themselves for potential beneficiaries should reimbursement coverage for hair-loss treatments expand in South Korea.