[Edaily Reporter Hong Ju-yeon ] On the 7th, the domestic pharmaceutical and biotech sector showed an overall upward trend despite significant volatility early in the session, including the activation of the sell-side circuit breaker on the KOSPI. LEMON COMPANY LIMITED, which had closed below its initial public offering (IPO) price on its first day of trading the previous day, successfully rebounded to hit the daily price limit the following day, while D&D Pharmatech Inc.(347850)and PharmaResearch(214450)also posted gains.

LEMON COMPANY LIMITED Bounces Back to Daily Price Limit the Next Day After Falling Below IPO Price on First Day

According to KG Zeroin MP Doctor (formerly Marketpoint), LEMON COMPANY LIMITED closed at 12,220 won—

the daily price limit

—up 2,820 won from the previous day. This represents a 22.2% increase from the initial public offering (IPO) price of 10,000 won. However, the stock experienced significant volatility, briefly falling 14.8% from the previous day’s close to 8,520 won during the trading session.

On its first day of trading the previous day, LEMON COMPANY LIMITED soared to 20,300 won—more than 100% above the IPO price—immediately after the market opened. However, it gave up all its gains in the afternoon and closed its first trading session at 9,400 won, down 6% from the IPO price. The company’s close at the daily price limit the following day is interpreted as the result of bargain-hunting following the previous day’s sharp decline.

LEMON COMPANY LIMITED is a company that operates a two-way medical data intermediary platform connecting participants in the medical data ecosystem—including hospitals, patients, insurance companies, and pharmaceutical firms—in real time. Based on its core technology, LEMON COMPANY LIMITED’s Digital Bridge (LDB), the company operates services such as “LDB-H,” a smart hospital service contracted with 38 of South Korea’s 47 major tertiary general hospitals, and “LDB-E,” a health insurance claims service. The company plans to use the funds raised through the IPO to build infrastructure for the distribution and trading of medical data for artificial intelligence (AI) training and to enhance its existing services.

Hong Byung-jin, CEO of Lemon Healthcare, stated, “Taking our KOSDAQ listing as an opportunity, we will further enhance the competitiveness of our medical data intermediary platform and accelerate the construction of infrastructure for the distribution and trading of medical data for AI training, thereby establishing ourselves as a company that connects the medical AI ecosystem.”

D&D Pharmatech Inc. Sees Increased Intraday Volatility… Closes Up 12.4%

D&D Pharmatech Inc. closed the regular session at 85,300 won, up 9,400 won (12.38%) from the previous day. The stock showed high volatility during the session, reaching an intraday high of 91,900 won and a low of 72,600 won. Regarding the day’s price increase, a company official explained, “There is no specific reason; it appears to be due to expectations for a major deal in the future.”

The market anticipates that D&D Pharmatech Inc. will license its MASH treatment candidate “DD01” before the end of the year. DD01 is a dual-acting agent that simultaneously targets glucagon-like peptide-1 (GLP-1) and glucagon (GCG) receptors; its mechanism of action involves improving fatty liver disease through weight loss and blood glucose control. In late May, D&D Pharmatech Inc. announced Phase 2 clinical trial results at the European Association for the Study of the Liver (EASL) conference, showing that DD01 achieved statistical significance in key endpoints. The company expects to receive the Clinical Study Report (CSR) for its MASH treatment candidate “DD01” in the third quarter.

The securities industry also highly rates DD01’s potential for technology transfer negotiations. In a report last month, Heo Hye-min, an analyst at KIWOOM Securities, stated, “As it is currently the only late-stage candidate in the global MASH market to have successfully completed Phase 2 trials and be eligible for a license-out deal with a big pharma company, it is in a favorable position for negotiations,” adding “Even when compared to the case of Boston Pharma’s MASH treatment, Efimosfermin, which was licensed to GSK Holdings for a total of $2 billion (3.0328 trillion won) after completing Phase 2 clinical trials, DD01 holds an equal or superior advantage in histological indicators such as reduction in fatty liver, resolution of MASH, and improvement in fibrosis,” she explained.

The company explained, “Our primary goal is to find a partner capable of facilitating the fastest and most efficient global development and commercialization,” adding, “The level of understanding among companies currently in discussions has increased, and we are proceeding by comprehensively considering both the partner best suited for product development and the most favorable terms for our company.”

PharmaResearch: Earnings Expectations Rise Amid Consecutive Positive Developments… Up 8.4%

PharmaResearch closed at 340,500 won, up 26,500 won (8.44%) from the previous day. This is interpreted as reflecting expectations for future earnings driven by a series of positive developments. A PharmaResearch official stated, “It appears that various complex factors, such as recent market conditions and investor sentiment, have played a role, but we cannot confirm any specific issue.”

The securities industry is optimistic about the resumption of PharmaResearch’s earnings momentum. Despite a decline in spending by foreign visitors to Korea in January and February, PharmaResearch’s first-quarter domestic medical device sales totaled 58.4 billion won, driven by increased domestic demand and expansion into new medical specialties, resulting in a mere 2.2% decrease compared to the previous quarter.

Kang Eun-ji, an analyst at Korea Investment & Securities, predicted, “PharmaResearch’s second-quarter domestic medical device sales are expected to increase by more than double digits compared to the first quarter, driven by robust domestic demand and a rebound in foreign demand.” The cosmetics business, which showed robust growth across both domestic and international channels in the first quarter, is also expected to maintain strong performance starting in the second quarter, driven by the expansion of its TikTok channels in Southeast Asia and its entry into offline channels in the U.S.

In line with this, on the 30th of last month, PharmaResearch signed an agreement to acquire CG USA, a cosmetics OEM/ODM company based in California, securing a local production base in the North American market. The company is expected to accelerate its expansion into North America by stably meeting the growing demand for Rejuran Cosmetics—particularly through Sephora and Amazon—and by entering the Canadian market in the second half of the year.

Son Ji-hoon, CEO of PharmaResearch, stated, “The acquisition of CG USA is a strategic decision aimed at strengthening supply stability and laying the groundwork for business expansion in the North American market,” adding, “We plan to continuously enhance our competitiveness in the global derma-cosmetics business by leveraging local production capabilities and quality infrastructure.”