[Edaily Reporter Kim Seung-kwon ] On the 13th, in the domestic pharmaceutical, biotech, and healthcare sectors, DRTECH Corporation(214680) Kolon TissueGene, Inc.(950160) #Finemedix Co., Ltd. all posted gains. DRTECH Corporation and Finemedix Co., Ltd. both rose on the back of improved earnings. Kolon TissueGene, Inc., meanwhile, drew attention by recovering part of its losses in just eight trading days, despite seeing its market capitalization more than halved last month following a Phase 3 clinical trial setback.

Kolon TissueGene, Inc. Rebounds from Clinical Trial Setback… Hits 25,600 Won

According to KG Zeroin MarketPoint ( Kolon TissueGene, Inc.(950160)), the stock traded at 25,600 won today—a 19.9% surge from the previous trading day—marking its largest single-day gain since the announcement of the clinical trial failure. Given that the stock had plummeted by over 75% to the 15,000-won range within four days—including three consecutive days of hitting the daily price limit down—immediately following the initial topline announcement of the U.S. Phase 3 clinical trial for its osteoarthritis cell and gene therapy “TG-C” (formerly Invossa) on the 20th of last month, the speed at which this rebound has recovered the losses is particularly striking.

Looking at the stock’s price movement, Kolon TissueGene, Inc. fell to the 15,000-won range on the 24th of last month and subsequently dropped further to the 11,000-won level at one point. However, starting with a rise to 13,000 won (+11.4%) on the 31st of last month, the price climbed to 14,290 won on the 3rd of this month, 15,920 won on the 4th, 17,260 won (+8.42%) on the 5th, 17,660 won on the 7th, 20,500 won during intraday trading on the 10th, and 21,350 won (+8.82%) on the 12th, marking an upward trend for eight consecutive trading days. This represents a rebound of over 130% from the low at the end of last month (in the 11,000 won range).

In terms of market capitalization, the company’s value—which hit a low of approximately 3 trillion won last August—surged to about 11.76 trillion won in May of this year, driven by expectations for clinical trials. It has since undergone a correction, and industry observers believe its trajectory could shift significantly depending on the results in October.

The market views this rebound as the result of a combination of factors—including bargain hunting following the sharp short-term decline, short covering, and anticipation of the results from the second Phase 3 clinical trial (TGC-12301) scheduled for October—rather than being driven by earnings or clinical results.

Kolon TissueGene, Inc. has been developing TG-C—the world’s first cell-gene therapy for osteoarthritis—since 1999. The company faced a delisting crisis in 2019 when the marketing authorization for “Inbosa,” which it had received in 2017, was revoked due to a controversy over its ingredients; however, following the U.S. FDA’s approval to resume clinical trials in 2021, followed by the resumption of trading in 2022, the company has been preparing for a comeback. However, in the first Phase 3 clinical trial (TGC-15302) announced on the 20th of last month, the drug failed to demonstrate statistical significance compared to the placebo in the co-primary endpoints, including the Visual Analog Scale (VAS) for pain and the Western Ontario and McMaster Universities Osteoarthritis Index (WOMAC) for joint function.

According to the securities industry, there is speculation that Kolon TissueGene, Inc.’s enterprise value could vary significantly depending on whether future clinical results demonstrate not only pain relief but also structural improvements—such as cartilage regeneration—leading to certification as a “disease-modifying osteoarthritis drug (DMOAD).”

The company maintains that it has no issues with its financial resources. A KOLON CORPORATION official stated, “Depending on the results of the second clinical trial, the required clinical period and costs may vary, so further discussions with the largest shareholder will be necessary.” The results of the second clinical trial, scheduled to be announced this October, are expected to be the key determinant of TG-C’s development trajectory and Kolon TissueGene, Inc.’s stock price.

DRTECH Corporation Soars to Daily Price Limit on First-Half Earnings Turnaround

DRTECH Corporation(214680)The stock closed at 1,045 won, up 29.98% from the previous trading day, hitting the daily price limit. Analysts attribute this surge directly to the first-half earnings results announced today. DRTECH Corporation announced that its revenue for the first half of this year reached 68.9 billion won, a 17% increase compared to the same period last year. This marks the company’s highest-ever half-year revenue since its founding. Operating profit turned positive, rising to 1.3 billion won from a loss of 2.6 billion won in the same period last year, while net income also turned positive, rising to 1.2 billion won from a loss of 10.3 billion won in the same period last year, indicating simultaneous improvement in profitability metrics.

Founded in 2000 and listed on KOSDAQ in 2016, DRTECH Corporation is a company specializing in digital X-ray detectors and is an export-oriented firm with overseas sales accounting for approximately 80% of its total revenue. The “AIDIA” series for breast cancer diagnosis drove sales growth; in particular, sales of the premium 3D mammography product “AIDIA Lux” increased following its inclusion in the domestic health insurance reimbursement list, and the stereotactic biopsy system “AIDIA Lux TrueMetric,” newly launched this year, is also gaining traction both domestically and internationally. Sales of the “Extron” surgical C-arm system also surged 52% year-over-year in the first half of the year as the company expanded its supply to the U.S., Europe, and the Middle East.

A DRTECH Corporation official stated, “By fully absorbing all one-time costs related to new product research and development (R&D) and facility investments last year, we have laid the groundwork to improve profitability this year,” adding, “We expect to further increase both sales and profitability in the medium to long term.”

Meanwhile, at an extraordinary general meeting of shareholders held on the 6th, DRTECH Corporation decided to consolidate its par value from 100 won to 500 won, thereby relieving the company of the burden of delisting requirements related to so-called “penny stocks.” Trading will be suspended from August 20 to September 9, and the company is scheduled to be relisted on September 10. The total number of issued shares is expected to decrease from approximately 88.47 million to approximately 17.69 million.

Finemedix Co., Ltd. Rises Over 11% on Simultaneous Growth in Domestic and Overseas Sales

#Finemedix Co., Ltd. also traded at 5,600 won on this day, up 11.5% from the previous trading day. The improvement in first-half earnings released today is cited as the reason for the rise.

Finemedix Co., Ltd. reported consolidated revenue of 6.263 billion won and operating profit of 39 million won for the first half of this year. Revenue increased by 43.7% compared to the same period last year (4.359 billion won), and the company returned to profitability after posting an operating loss of 1.375 billion won in the first half of last year. Domestic sales rose 38.2% year-over-year to 4.445 billion won, while overseas sales grew 51% to 1.601 billion won, showing balanced growth across both markets.

Founded in 2009, Finemedix Co., Ltd. is a medical device company that has led the localization of gastrointestinal endoscopic instruments and was listed on KOSDAQ last December. The company supplies its flagship product, the “ClearCut Knife,” as well as snares, injectors, biopsy forceps, and hemostatic devices to major university hospitals and large medical centers, and is also expanding into the U.S. market with its “ClearTip” tissue-collection device.

This improvement in performance is attributed to a combination of factors: strengthening direct sales focused on top-tier general hospitals in Korea, the full-scale launch of its endoscopy equipment business, and entry into new overseas markets. Sales to top-tier hospitals in the Seoul metropolitan area increased by 60% compared to the same period last year, and initial orders were received not only from existing clients in Russia, the United Kingdom, and Malaysia but also from the United States, Brazil, Japan, and the Czech Republic. Recently, the company completed the transition to European CE MDR certification for seven types of next-generation procedural devices, and its entry into the European market is expected to gain momentum.

The securities industry is also offering positive outlooks. Based on expanding endoscopy equipment sales and increased overseas revenue, Korea Investment & Securities projected Finemedix Co., Ltd.’s revenue for this year at 15.4 billion won and operating profit at 1 billion won, forecasting a 60.7% year-over-year revenue growth and a return to profitability.

Jeon Seong-woo, CEO of Finemedix Co., Ltd., stated, “Profit indicators improved in the first half of the year as domestic and international sales growth aligned with operational efficiency,” adding, “In the second half, we will focus on expanding adoption at top-tier general hospitals in Korea and securing repeat orders in key markets such as the U.S. and Japan.”