[Edaily Reporter NA EUN-KYUNG ] Despite the “Black Tuesday” sell-off on July 28, several biotech stocks bucked the broader market trend. As the KOSDAQ tumbled, Cellid, Bioinfra, and MedPacto all hit the daily upper limit. MedPacto gained on renewed optimism regarding its lead pipeline and new drug candidates, while Bioinfra staged a dramatic rebound ahead of a key deadline that could determine whether it is placed on the Korea Exchange’s watchlist.

Meanwhile, newly listed HL Genomics fell to nearly half its IPO price just four trading days after its market debut, highlighting continued weakness in Korea’s IPO market.

MedPacto Rallies on Vactosertib, New Pipeline

According to KG Zeroin MP Doctor, formerly MarketPoint, MedPacto surged 29.85% to 3,480 won, with trading volume jumping more than fivefold.

Investor sentiment improved as its lead candidate, vactosertib, continued to generate positive clinical data. A recent paper in *Nature Communications* showed that combining vactosertib with affiliate Celloram’s dendritic cell cancer vaccine, PROTEXI, significantly reduced tumor size and improved survival compared to vactosertib alone.

The company also reported encouraging Phase 2 results from a combination of vactosertib and Merck’s Keytruda in patients with microsatellite-stable metastatic colorectal cancer—a patient group that typically responds poorly to immunotherapy. MedPacto is now seeking partners for a triple-combination regimen involving a PD-1 inhibitor and a VEGF inhibitor.

Beyond vactosertib, the company is advancing MP2021, a bone disease candidate that recently entered the Australian regulatory process for a Phase 1 trial, and MP010, a first-in-class dual-target cancer therapy. MedPacto plans to file an Investigational New Drug (IND) application for MP010 by the end of the year.

Bioinfra Rallies Ahead of Watchlist Deadline

Bioinfra also staged a dramatic rebound as it approached a crucial deadline that could determine its watchlist status.

On July 23, the Korea Exchange designated Bioinfra as a company at risk of being placed on the watchlist because its market capitalization had fallen below 20 billion won. Under the revised KOSDAQ listing maintenance rules that took effect this month, companies whose market capitalization remains below that threshold for 25 consecutive trading days are subject to watchlist designation. Bioinfra must recover above the threshold by July 30 to avoid the designation.

The company rebounded sharply after returning to profitability, posting two consecutive limit-up sessions through July 28. Even so, its market capitalization stands at just 12.9 billion won, well below the required level.

Pressure will persist even if the company is placed on the watchlist. Delisting risks arise if its market capitalization remains below 20 billion won for at least 45 of the following 90 trading days. Analysts noted that sustained earnings improvement and stronger corporate value will be more important than a temporary spike in the share price.

Bioinfra operates a central laboratory business for clinical sample analysis and provides contract research organization (CRO) services. While long-term growth prospects for the CRO industry remain favorable as global drugmakers expand their R&D spending, investors are watching to see whether the company’s return to profitability can be sustained through new orders and the acquisition of overseas clients.

Based on the July 28 closing price, Bioinfra’s market capitalization would need to rise by about 55% to exceed the 20 billion won threshold. Simply put, that would require two more consecutive limit-up sessions before the deadline. Investors are now focused on whether the company can clear the market capitalization hurdle rather than merely extend its short-term rally.

HL Genomics Falls Below Half of Its IPO Price

HL Genomics closed at 10,840 won on July 28, down 19.58% from the previous session, just four trading days after listing on the KOSDAQ on July 24. The stock has fallen 49.6% from its IPO price of 21,500 won.

The decline occurred despite strong IPO demand, including a 714.5-to-1 institutional book-building ratio and pricing at the top end of the indicated range. Analysts said the stock was unable to overcome the broader weakness in Korea’s IPO market, where many newly listed companies have traded below their offering prices shortly after their debut.

The company’s business profile has also drawn less investor attention. HL Genomics manufactures active pharmaceutical ingredients (APIs) used in treatments for hypertension, hyperlipidemia, and allergies. As investor interest has shifted toward high-growth platforms such as obesity drugs, antibody-drug conjugates (ADCs), and cell and gene therapies, API manufacturers have been viewed as offering relatively lower growth potential.

Industry observers, however, noted that the sector’s long-term outlook remains favorable. Global supply chain restructuring, reduced dependence on China, government policies promoting domestic API production, and growing demand for contract development and manufacturing organization (CDMO) services could provide structural support for Korean API manufacturers.

Ultimately, analysts said future stock performance will depend on earnings execution. HL Genomics plans to use IPO proceeds to expand its second manufacturing facility and increase production capacity. Whether the expansion translates into revenue growth, helps secure customers beyond its parent company Hanlim Pharmaceutical, and generates meaningful CDMO contracts will be key factors in any future valuation reassessment.

"The recent weakness in the stock price reflects cautious investor sentiment toward newly listed companies and growth expectations rather than concerns about the industry’s long-term outlook," said an industry official. "The company will need to restore market confidence through earnings growth and new contract wins."