[E-Daily Reporter NA EUN-KYUNG ] On the 8th, in the domestic pharmaceutical and biotech stock market, ANTEROGEN CO., LTD.(065660)plummeted to its daily price limit amid concerns over its market potential in Japan, while Hanmi Science(008930)rose on expectations of a battle for control as a management dispute intensified. ABL Bio (ABL Bio Inc.(298380)) saw its stock price fall sharply as profit-taking selling pressure surged, despite the company presenting its growth strategy at an investor relations (IR) briefing the previous day.

ANTEROGEN CO., LTD. Hits Daily Low… Market ‘Shocked’ by Interpretation of “25 Patients in Japan”

According to KG Zeroin’s MP Doctor (formerly Market Point), ANTEROGEN CO., LTD.’s stock price fell to the daily price limit despite the health insurance reimbursement price for its regenerative medicine product “Allostem Sheet” having been finalized in Japan that day. This is interpreted as a result of spreading concerns that the Japanese market size might be far smaller than expected, following news that the Central Social Insurance Medical Council’s data listed the projected number of patients as 25.

ANTEROGEN CO., LTD., which had hit a 52-week high of 64,800 won on March 13 ahead of its Japanese approval, had been on a downward trend due to delays in the launch of Allostem Sheet in Japan. When the news broke on the market that day, its stock price hit a 52-week low of 15,350 won.

Following the sharp drop in its stock price, ANTEROGEN CO., LTD. issued a clarification regarding the figure of 25 patients listed in the application. An ANTEROGEN CO., LTD. official explained, “The figure of 25 is merely an initial estimate of insurance financing costs submitted during the application process for determining the Japanese insurance reimbursement price; it does not represent the overall market size.” The official added, “Furthermore, rare regenerative medicine products are characterized by the fact that market size is determined not by the number of patients, but by the dosage per patient and whether repeat treatments are required.” This means that the scope of insurance coverage may vary depending on the dosage per patient during the actual treatment process.

In particular, depending on the size of the lesion, approximately 20 sheets are used per procedure, and up to 12 repeat treatments per year are possible depending on the course of treatment. Based on Japan’s health insurance pricing standards, the annual insurance benefit per patient could reach approximately 43.2 million yen (about 400 million won). However, actual usage and the number of treatments may vary depending on the patient’s condition and the medical team’s judgment.

The company stated that the commercialization schedule is proceeding without a hitch. ANTEROGEN CO., LTD. official said, “We plan to ship the first batch of products to Japan on the 13th, and starting on the 15th, patients will be eligible for health insurance coverage when using Allostem Sheet.”

Meanwhile, Allostem Sheet is an allogeneic stem cell-based regenerative medicine product used to treat skin defects in patients with epidermolysis bullosa (EB). It received marketing approval in Japan last April. Since then, the company has been undergoing the process to have the product listed on the national health insurance price list, and on this day, the insurance price was finalized at 182,096 yen (approximately 1.69 million won) per sheet.

Hanmi Science Soars… Control Dispute Resumes

Hanmi Science, the holding company of the HanmiPharm Group, closed at 33,650 won today, up 6.32% from the previous trading day. During the session, the stock showed strength, rising as high as 38,600 won.

This rise is believed to be driven by the resurgence of the Hanmi Group’s management control dispute, which had been dormant for some time. On the 29th of last month, Lim Jong-hoon, CEO of Hanmi Fine Chemicals and the second son of HanmiPharm Chairwoman Song Young-sook, decided to sell 2.5% of his stake in Hanmi Science to the Now IB Fund No. 22. This move appears to have reignited the full-scale battle for control between the founder’s family and Han Yang Precision Chairman Shin Dong-guk (see related article in Pharm E-Daily: “Lim Jong-hoon Transfers Stake to PEF…Hanmi Family’s Management Control Dispute Enters a New Phase’).

After the market closed on the 7th, Chairman Shin—currently the largest shareholder—announced a countermeasure, stating he would purchase 3,604,799 shares of Hanmi Science in an over-the-counter transaction valued at approximately 172.7 billion won. The transaction will take place from August 7 to 11, with an acquisition price of 47,920 won per share. Once this transaction is completed, Chairman Shin’s stake will increase from 22.88% to 28.15%. Combined with the 6.95% stake held by Hanyang Precision, Chairman Shin’s group’s total stake will reach 35.1%.

Some observers had expected the management control dispute to effectively enter its final stages after CEO Lim Jong-hoon announced that he had sold a portion of his shares to friendly parties, stating, “Together with my mother and sister, I will carry on the vision of the late founder, Chairman Lim Seong-ki, to ‘serve the nation through pharmaceuticals.’” However, with Chairman Shin purchasing an additional 170 billion won worth of shares, some observers say the battle for control has instead entered a phase where the outcome is impossible to predict until next year’s annual general meeting of shareholders.

In particular, the shares Chairman Shin is acquiring this time are held by related parties, including Hong Ji-yoon, the spouse of Lim Jong-yoon, Chairman of Kori Group and the eldest son of HanmiPharm Chairman Song Young-sook. Following his large-scale acquisition of shares held by Chairman Lim Jong-yoon last March, Chairman Shin has now secured shares held by his spouse and other related parties as well.

This effectively means that the brothers—who had joined forces with Chairman Shin to oppose their mother and sister during the push to merge OCI Holdings Company Ltd.(010060)and HanmiPharm Group—are now on opposing sides. Recently, the younger son, Lim Jong-hoon, CEO of Hanmi Fine Chemicals, has sided with his mother, Chairwoman Song Young-sook, and his older sister, Vice Chairwoman Lim Ju-hyun, while Chairman Shin has been successively acquiring shares held by the eldest son, Chairman Lim Jong-yoon.

Typically, management control disputes tend to have a positive short-term impact on stock prices, as they fuel expectations of additional share purchases and management control premiums. The market is also paying close attention to the possibility of further competition for shares and a potential proxy battle at next year’s annual shareholders’ meeting.

ABL Bio Releases a Flurry of Positive News… Yet Stock Price Plummets Instead

ABL Bio held an investor relations (IR) briefing in Yeouido, Seoul, the previous day, announcing plans to enter Phase 3 clinical trials in the U.S. for its stomach cancer treatment ABL111, a strategy to expand its blood-brain barrier (BBB) platform, and plans to commercialize its bile duct cancer treatment ABL001. However, the company’s stock price actually fell by double digits that day, showing a downward trend. The stock closed at 81,500 won, down 13.21%, during regular trading hours and continued its downward trend in the NextTrade (NXT) after-hours market.

At an investor relations (IR) briefing the previous day, ABL Bio announced that ABL111, a gastric cancer treatment, would begin a U.S. Phase 3 clinical trial in December of this year based on its Fast Track designation from the U.S. Food and Drug Administration (FDA). The company also stated that ABL001, a treatment for bile duct cancer, is currently undergoing the approval process with the goal of launching in the U.S. next year. In particular, ABL Bio CEO Lee Sang-hoon emphasized that the joint research with Eli Lilly is progressing faster than expected, and that development of the BBB platform—including ABL301, a Parkinson’s disease treatment being co-developed with Sanofi—is proceeding smoothly.

However, the stock price weakened amid short-term profit-taking and growing concerns over intensifying competition in the BBB platform sector. In particular, an article titled “Lilly Buys Another BBB Platform… What Does This Mean for ABL Bio?”—published for free by PharmDaily that morning—suggested that competition among Lilly’s internal platforms may be inevitable, as the company has secured the BBB platform of Swedish biotech firm BioArctic following its acquisition of ABL Bio’s platform.

In response, ABL Bio maintains that its IGF1R-based BBB platform, GrabBody-B, possesses a distinct competitive edge. According to the company, GrabBody-B offers higher efficiency in delivering drugs to the brain compared to TfR-based platforms like BioArctic’s, and is more likely to deliver the drug deep into brain tissue after crossing the BBB.

Meanwhile, CEO Lee Sang-hoon also unveiled plans for the next-generation development of GrabBody-B at the event. “GrabBody-B is now entering its second generation,” he said, adding, “We have laid the groundwork to expand the platform—which was previously antibody-centric—to include various modalities such as short interfering RNA (siRNA), enzymes, and fusion proteins.”