[Yu Jin-hee, Edaily Reporter] On the 7th, amid mixed trading in the South Korean stock market, pharmaceutical and biotech companies demonstrating clear earnings growth and solid momentum stood out. Departing from past trends that heavily relied on technical uncertainty or mere expectations, actual revenue generation in global markets and tangible results from operational restructuring have emerged as key drivers of stock performance.

Daehwa Pharm Gains Momentum on Rapid Growth in China with 'Liporaxel'

According to KG Zeroin’s MP DOCTOR, the leading pharmaceutical and biotech stocks among the day’s top 30 gainers were Daehwa Pharmaceutical, LabGenomics, and NeoImmuneTech. Their share prices surged by 13.05% (closing at 10,740 KRW), 12.50% (882 KRW), and 12.01% (1,529 KRW), respectively, capturing significant market attention.

Daehwa Pharmaceutical’s upward momentum was driven primarily by overseas sales, particularly in the Chinese market. The company clearly demonstrated through its quarterly earnings that its global market expansion is yielding tangible results.

Daehwa Pharm announced on the same day that its second-quarter consolidated revenue reached 41.3 billion KRW, up 15% from 36.0 billion KRW in the same period last year. Notably, profitability saw a dramatic turnaround. Operating profit rose approximately 11.7-fold, climbing from 300 million KRW to 3.3 billion KRW. The operating profit margin jumped from 0.8% to 8.1%, and net income turned profitable at 2.0 billion KRW, recovering from a net loss of 500 million KRW in the prior-year period.

The main driver behind this strong performance was the full-scale supply of “Liporaxel Solution,” an oral paclitaxel anticancer drug, in China. Under its supply agreement with Chinese partner RMX Biopharma, Daehwa Pharm delivered 9.7 billion KRW worth of Liporaxel in the first half of the year alone. After receiving marketing approval in China as a treatment for gastric cancer in September 2024, Liporaxel was added to the National Reimbursement Drug List (NRDL) in December 2025, with national insurance coverage taking effect in January of this year.

As a result, Daehwa Pharm’s first-half sales in China surged to 10.1 billion KRW, more than a fivefold increase compared to approximately 1.8 billion KRW in the same period last year. Total consolidated exports for the first half reached 17.4 billion KRW, already surpassing last year’s full-year export total of 16.6 billion KRW.

Moving forward, the key factor will be whether the expansion of prescriptions for Liporaxel in China leads to sustained additional orders. Furthermore, having secured an additional indication from South Korea’s Ministry of Food and Drug Safety (MFDS) in May for the first-line treatment of recurrent or metastatic HER2-negative breast cancer, the company’s ability to expand into breast cancer indications and deliver global clinical outcomes will be pivotal for its future valuation.

"Liporaxel Solution is rapidly establishing its presence not only domestically but also in international markets," said a Daehwa Pharm official. "We will continue to drive patient-centered innovation through indication expansions and global development."

LabGenomics Accelerates 'Global Diagnostics' Through U.S. Operations Consolidation and Licensing Deal

For LabGenomics, a molecular diagnostics company specializing in genomics, the primary catalyst for its stock surge was an exclusive U.S. licensing agreement in the cancer diagnostics field signed with liquid biopsy firm Dxome through its U.S. subsidiary, LabGenomics. Under the agreement, LabGenomics (US) will exclusively supply three high-value diagnostic services to the U.S. market: the “Hema655” hematologic malignancy panel, the “MRD30” minimal residual disease panel, and the “Lymphoma-ctDNA” circulating tumor DNA panel.

In particular, Dxome’s proprietary liquid biopsy platform “PiSeq,” developed by a team from Severance Hospital’s Department of Laboratory Medicine, prevents data loss during processing and significantly enhances variant detection accuracy. By integrating Dxome’s precision molecular diagnostics into its existing flow cytometry, cytogenetics, and NGS panels, LabGenomics has built a comprehensive blood cancer diagnostic portfolio covering cell analysis, chromosome testing, genetic screening, and post-treatment monitoring. With testing networks across 27 U.S. states and established distribution channels with Integrated Delivery Networks (IDNs) such as Sutter Health, rapid commercialization is anticipated.

The consolidation of its local sales network also had a positive impact on investor sentiment. After acquiring US Clinical Laboratory Improvement Amendments (CLIA)-certified labs QDx in 2023 and IMD in 2024, LabGenomics recently unified them under a single brand, “LabGenomics.”

On the 4th, the company held a “National Sales Meeting” at its New Jersey laboratory, bringing together sales personnel from across the country and doubling its sales force. The company also appointed Tim Murray, a 20-year veteran in diagnostic laboratory sales, as Vice President of Sales to streamline cross-selling and reorganize regional sales structures.

Market observers expect cost efficiencies from eliminating duplicate infrastructure and revenue rebound effects from brand consolidation to materialize in the second half of the year. Whether top-line growth at the U.S. subsidiary directly translates into expanded scale and profitability for the parent company will be a crucial benchmark moving forward.

“We will be able to deliver differentiated hematologic cancer diagnostic services to the U.S. market,” a LabGenomics official stated. “Based on our comprehensive diagnostic framework—spanning cell analysis, genetic testing, and follow-up monitoring—we aim to enhance overall profitability.”

NeoImmuneTech Seeks Rebound Through New Revenue Streams and a Focus on Financial Stability

NeoImmuneTech gained market favor as its preliminary efforts to turn around its business performance were positively received. Previously, NeoImmuneTech announced the voluntary withdrawal of its Phase 2 clinical trial (NIT-119) for “NT-I7” (efineptakin alfa, a long-acting interleukin-7) in non-small cell lung cancer (NSCLC) due to delayed patient recruitment and the expiration of a joint supply agreement with Roche. As multiple company-sponsored trials for glioblastoma, skin cancer, and gastric cancer had previously been discontinued, market confidence had taken a hit. Currently, the company’s clinical trials have been streamlined to focus primarily on a Phase 1b/2a solid tumor trial in the U.S. and studies on acute radiation syndrome (ARS).

Amid ongoing uncertainty regarding its core pipeline development, the company sought to make a breakthrough during an investor presentation in July by outlining plans to secure at least one licensing-out deal within the year and stabilize its finances through new revenue sources.

The most notable initiative is the U.S. commercialization of “Endari,” a treatment for sickle cell disease. After acquiring a drug distribution license in Maryland in May, NeoImmuneTech began distribution. By partnering with leading U.S. pharmaceutical wholesalers—McKesson, Cencora, and Cardinal Health—the company aims for annual sales exceeding $8 million (approximately 11.3 billion KRW). This revenue is intended to offset R&D expenses while establishing distribution and insurance networks that can later support the commercialization of NT-I7.

Additionally, the company reported having 45.0 billion KRW in available cash as of late June, asserting that under its current development plan, operations can be sustained through 2027 without additional capital raises or shareholder dilution. Operating expenses have also been drastically reduced from 55.6 billion KRW in 2023 to 25.3 billion KRW in 2025, and 6.7 billion KRW in Q1 2026.

NeoImmuneTech’s valuation recovery will ultimately depend on achieving its $8 million annual revenue target for Endari, securing early licensing agreements for its investigator-initiated trial combining NT-I7 with CAR-T therapies (NIT-126), and gaining momentum through U.S. government (BARDA) contracts and ARS drug approval timelines.

"For the ARS treatment, we expect to secure final primate study data as early as the end of this year," a NeoImmuneTech representative noted. "However, the exact timing may vary depending on the outcomes of other priority tasks."