[Edaily Reporter Hong Ju-yeon ] On the 3rd, the domestic pharmaceutical and biotech sector saw a tailwind thanks to the KOSDAQ’s strong performance. Buying pressure surged on the KOSDAQ that day, triggering the 16th “KOSDAQ Buy Side Car” of the year at 10:28 a.m. DEEPNOID Inc.(315640) Peptron, Inc.(087010) each hit their daily price limit, driven by expectations of DEEPNOID Inc.’s first medical AI supply contract and

inclusion in Eli Lilly’s GLP-1 supply chain, respectively. However, L&C BIO(290650)traded lower in the wake of the announcement of a large-scale rights offering worth around 140 billion won.

DEEPNOID Inc. Rises on First Supply Contract for Generative Medical AI

According to KG Zeroin MP DOCTOR on the 3rd

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DEEPNOID Inc. closed at 1,599 won, up 369 won (30.00%) from the previous trading day. This was driven by news of a supply contract with Pusan National University Hospital for “M4CXR,” a generative AI-based solution for generating preliminary chest X-ray reports. This marks the first supply deal secured since M4CXR received medical device approval from the Ministry of Food and Drug Safety in late June.

Pusan National University Hospital is a tertiary general hospital with approximately 1,000 beds and serves as a regional medical hub; this contract is part of the “AI Medical System Support Project for Regional Hub Medical Institutions” promoted by the Ministry of Health and Welfare. DEEPNOID Inc. plans to use this supply agreement as a springboard to expand the commercialization of its generative medical AI business to hospitals across South Korea.

DEEPNOID Inc. is a first-generation medical AI company that has focused on developing AI to assist in medical image interpretation since its establishment in 2017. M4CXR is a solution that goes beyond simple lesion detection; it analyzes chest X-ray images to automatically generate preliminary reports for physicians to reference, and is expected to contribute to streamlining the work of radiologists.

DEEPNOID Inc. representative stated, “DEEPNOID Inc. is solidly establishing a nationwide sales network and is pursuing a comprehensive strategy to promote the adoption of our solutions, ranging from university hospitals to local clinics and medical centers,” adding, “Starting with this supply to Pusan National University Hospital, we expect to share news of several additional contracts in the near future.”

Choi Woo-sik, CEO of DEEPNOID Inc., said, “Starting with this project, we will deliver tangible clinical benefits and business results in the field,” adding, “We plan to expand the scope of our generative medical AI solutions to include CT and MRI in the future.”

Peptron, Inc. Rises 29.97% on Expectations of Inclusion in Lilly’s GLP-1 Supply Chain

Peptron, Inc. closed the regular session at 166,100 won, up 38,300 won (29.97%) from the previous trading day. Expectations that the company will join Eli Lilly’s domestic production supply chain for its once-monthly GLP-1 weight-loss drug drove the stock price higher.

On that day, industry sources noted that a production structure had taken shape in which IT-CHEM Co., Ltd. in Ochang, Cheongju, North Chungcheong Province, would handle intermediates, while SK Biotech and SK Pharmteco in Sejong would produce active pharmaceutical ingredients (APIs). Meanwhile, the market expressed expectations that Peptron, Inc., which possesses technology for long-acting peptide injectables, could be the final piece of the puzzle for finished product manufacturing.

Peptron, Inc. had previously approved a resolution at its March board meeting regarding “the opening of a letter of credit (L/C) for the introduction of automated filling equipment at the Osong Plant No. 2.” Peptron, Inc. has stated that the Osong Plant No. 2 is scheduled to be built at a scale 2.6 times larger than originally planned, leading to growing market expectations that it is a cGMP facility intended for the production of the once-monthly weight-loss drug currently under joint development with Lilly. However, no official announcement has been made confirming Peptron, Inc. as Lilly’s final production partner.

Regarding the joint technology evaluation, Peptron, Inc. announced, “Due to contractual confidentiality obligations, we are restricted from disclosing the progress, evaluation results, or details of the discussions,” adding, “It is difficult for us to verify the accuracy of or comment individually on the various speculations and interpretations circulating in the market.” Furthermore, the company stated, “The Osong Plant No. 2 is being developed with the aim of establishing a mid- to long-term production base for the commercialization of the SmartDepot platform and the expansion of global production capacity,” adding, “We are expanding our production capacity in consideration of various business opportunities, including the license-out of long-acting pharmaceuticals, product supply, and CDMO operations.”

L&C BIO Down 6.45% Following Announcement of 140.6 Billion Won Rights Offering

L&C BIO closed the regular session at 48,550 won

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down 3,350 won (6.45%) from the previous trading day. This continued the impact of the announcement made on the 31st of last month regarding a rights offering of up to 140.6 billion won. According to the disclosure, L&C BIO will issue 3.7 million common shares. The planned issue price is 38,000 won per share, set 26.8% lower than the closing price of 51,900 won at the time of the announcement. The record date for the new share allocation is September 4, and the payment date is October 22.

Of the 140.6 billion won raised, 105 billion won will be invested in the construction of a global integrated smart production hub in Dongtan, Gyeonggi Province. The company plans to establish both a GTP system for the production of human tissue grafts and a GMP system for the production of human tissue-based medical devices. This initiative aims to expand production capacity for flagship products such as Re2O and MegaDerm and to establish a supply base in overseas markets, including the U.S. and Europe. The remaining funds will be used for working capital (20.6 billion won) and the repayment of convertible bonds (15.0 billion won).

Concurrently with the rights offering, the company plans to conduct a 1-for-1 stock split and fully cancel all convertible bonds—valued at 15 billion won based on acquisition cost—through the exercise of call options, thereby mitigating concerns regarding equity dilution and overhang. The company also explained that, given the nature of production facilities that generate long-term profits, utilizing equity capital is more appropriate for financial stability than resorting to short-term borrowing or issuing additional convertible bonds.

An L&C BIO official stated, “This rights offering is an investment aimed at supporting the growth of our ECM platform business and securing a stable production base and the capability to respond to the global market,” adding, “We are fully aware of the burden this places on our shareholders, and we will strive to ensure that the funds raised are used to expand production capacity and secure a foundation for profit generation.” The official further noted, “Our current apartment-style factory has clear efficiency limitations,” adding, “Given our solid track record, we will expand our production facilities to rapidly increase our production capacity (capacity).”

L&C BIO’s consolidated revenue for the first quarter of this year was 30.3 billion won, a 71% increase compared to the same period last year, while operating profit rose 917% to 6.0 billion won.