[Edaily Reporter KIM JI-WAN ] On the 27th, the pharmaceutical and life sciences sectors showed mixed performance on the domestic stock market. The pharmaceutical sector declined, while the life sciences sector rose slightly.

On that day, the pharmaceutical sector fell 0.97% compared to the previous trading day. Out of a total of 161 stocks, 47 rose, 15 remained unchanged, and 99 fell. With the number of declining stocks more than double that of rising ones, selling pressure dominated the sector as a whole.

In contrast, the life sciences sector rose 0.44% compared to the previous trading day. Of the 92 stocks in the sector, 27 rose, 9 remained unchanged, and 56 fell. Although the index rose, the number of declining stocks exceeded twice that of rising ones, suggesting that strong performance in a few stocks drove the sector index higher.

In particular, Huons Global Co., Ltd. hit the daily price limit as concerns over damage to shareholder value eased following news that the merger between Huons Co., Ltd. and Huons Lab had been called off. VIVOZON PHARMACEUTICAL rose sharply on expectations of a supply contract for its non-narcotic analgesic “Anaprazu” in China and its entry into the mainland market. CG Invites also extended its gains as the results of the global Phase 3 trial for Moderna and Merck’s personalized mRNA cancer therapy came into focus.

Huons Global Co., Ltd. Hits Daily Limit Up on Withdrawal of Huons Co., Ltd.–Huons Lab Merger Plan

Huons Global Co.

, Ltd.

closed at the daily limit

up after

completely

withdrawing the merger

plan

between Huons

Co

., Ltd. and Huons Lab

. This is interpreted as a surge in buying interest following the resolution of concerns that shareholder value could be compromised if Huons Lab—a key unlisted subsidiary of the holding company—were to be transferred to another affiliate.

According to KG Zeroin MP Doctor (MP DOCTOR, formerly Marketpoint) on that day, Huons Global Co., Ltd. closed at 30,900 won, up 7,100 won (29.83%) from the previous trading day. The stock surged to the daily price limit immediately after the market opened and remained at the upper limit until the close.

The direct catalyst for the sharp rise in the stock price was the withdrawal of the merger between subsidiaries announced the previous day. On the 26th, Huons Co., Ltd. held a board of directors meeting to revoke its previous decision to merge with the unlisted company Huons Lab and terminated the merger agreement. Consequently, follow-up procedures—including the extraordinary general meeting of shareholders scheduled to approve the merger—were also suspended.

Originally, on May 18, Huons Co., Ltd. had decided to merge with Huons Lab to strengthen its biopharmaceutical research and development (R&D) capabilities and secure a new drug pipeline. The merger valuation for Huons Co., Ltd. and Huons Lab was set at 34,062 won and 14,500 won, respectively, with a merger ratio of 1 to 0.4256893.

However, opposition arose during the merger process, primarily from Huons Global Co., Ltd. shareholders. Huons Lab is a key unlisted subsidiary in which Huons Global Co., Ltd. holds a 64.1% stake. Consequently, concerns were raised that the corporate value resulting from Huons Lab’s future growth could be transferred to Huons shareholders rather than Huons Global Co., Ltd. shareholders. Some minority shareholders even launched a petition campaign opposing the merger.

The decline in Huons Co., Ltd.’s stock price following the merger announcement also added to the pressure. Although Huons Co., Ltd.’s merger valuation was set at 34,062 won at the time the merger was decided, the stock price fell significantly below that level, widening the gap between the merger terms and the market price. In particular, the exercise price for the right to sell shares was set at 32,886 won—32.6% higher than Huons Co., Ltd.’s closing price of 24,800 won on the 26th. This structure meant that if the merger were to proceed, the company would face a significant cash burden.

A special committee formed by Huons Co., Ltd. also recommended suspending the merger in light of these circumstances. The special committee, consisting of two outside directors and one external expert, reportedly conducted a comprehensive review of the government’s shareholder protection policies, opposition from Huons Global Co., Ltd. shareholders, changes in the stock market environment, and the decline in Huons’ stock price.

Market attention is expected to shift to Huons Lab’s growth strategy following the collapse of the merger. Huons Lab is developing “HyDIFFUZE,” a platform technology that converts intravenous (IV) formulations into subcutaneous (SC) forms. The company plans to pursue global technology transfers for this technology independently of the merger.

However, securing R&D funding remains a challenge for Huons Lab. Huons Co., Ltd. posted an operating loss of 10.2 billion won last year and is in a state of negative equity; consequently, some analysts suggest that separate funding strategies—such as additional support from the holding company, attracting external investment, or technology licensing—will be necessary following the collapse of the merger.

A Huons Co., Ltd. official stated, “The need to secure business synergies and mid- to long-term growth drivers through the merger remains valid,” adding, “We prioritized the protection of shareholder value above all else.”

VIVOZON PHARMACEUTICAL Signs Supply Contract for ‘Anaprazu’ in China

#VIVOZON PHARMACEUTICAL saw its stock rise on news of a supply contract for the non-narcotic analgesic

“Anaprazu” in

China. The influx of buying interest is believed to stem from the company’s plan to target the local market using the Hainan Medical Special Economic Zone as a springboard.

On that day, VIVOZON PHARMACEUTICAL closed at 3,125 won, up 255 won (8.89%) from the previous trading day. The news that the company had signed a contract with a Chinese firm to supply finished Anaprazu products served as the backdrop for the stock’s rise.

VIVOZON PHARMACEUTICAL announced on the same day that it had signed a contract with Company G, located in Hainan Province, China, to supply finished Anaprazu products.

The company plans to initially focus on supplying Anapra Injection primarily within the “Hainan Province Boao Lucheng International Medical Tourism Pilot Zone,” which was designated by the Chinese government to foster the medical and biotech industries.

The Hainan Medical Special Zone is a region that allows innovative drugs approved overseas to be used in clinical settings under certain conditions, even before receiving formal marketing authorization from China’s National Medical Products Administration (NMPA). It serves as a gateway for overseas drugs to enter the Chinese market, as it enables companies to accumulate real-world prescribing experience and clinical data prior to obtaining formal approval in mainland China.

The contracting party, Company G, is a firm that has been supporting the local introduction of overseas pharmaceuticals and medical devices that have not yet been approved in China.

VIVOZON PHARMACEUTICAL is considering a plan to first gain usage experience by prescribing Anaprazu to actual Chinese patients in the Hainan Medical Special Economic Zone, and then expand its reach into the mainland Chinese market.

Ultimately, the goal is to obtain formal approval from the NMPA and supply Anaprazu throughout China. To this end, the company also plans to pursue partnerships with major local pharmaceutical companies.

VIVOZON PHARMACEUTICAL also plans to sign a licensing agreement for Anapra Injection with its affiliate, Vibozon, covering Hainan Province. Under this arrangement, VIVOZON PHARMACEUTICAL will export the finished Anapra Injection product to Hainan Province, and Vibozon will receive royalties based on sales.

A representative from VIVOZON PHARMACEUTICAL stated, “The signing of this finished product supply agreement is a meaningful first step toward entering the Chinese market,” adding, “We will use the Hainan Medical Special Economic Zone as a strategic foothold to expand the clinical value and competitiveness of Anapra in China and neighboring regions.”

CG Invites: Optimism Over mRNA Cancer Vaccines

CG Invites(083790)showed strength amid expectations of benefiting from the successful global Phase 3 clinical trials of Moderna and Merck (MSD)’s personalized messenger ribonucleic acid (mRNA) cancer therapies. As the two companies met key endpoints in their global Phase 3 trials, attention is reportedly turning to the technology of CG Invites, which is developing a similar personalized mRNA cancer vaccine strategy.

On that day, CG Invites closed at 998 won, up 60 won (6.40%) from the previous day.

A personalized mRNA cancer vaccine is a treatment method that analyzes a patient’s cancer genome to identify neoantigens specific to cancer cells and administers mRNA containing that information. Since genetic mutations vary from patient to patient, the core technology lies in accurately selecting neoantigens with a high likelihood of eliciting an immune response and translating them into a stable mRNA therapeutic.

CG Invites has secured AI-based neoantigen prediction technology and mRNA design technology that enhances protein expression levels and stability. In addition, the company has established functional sequence technology that ensures antigens produced by mRNA are effectively presented to immune cells, and is advancing the development of a platform that spans from neoantigen discovery to the optimization of immune activation.

Combination therapy with immune checkpoint inhibitors is also a key development strategy. This approach involves inducing a T-cell immune response to attack cancer cells using an mRNA cancer vaccine, while blocking cancer cell immune evasion through anti-PD-1-class immune checkpoint inhibitors. In preclinical studies, CG Invites confirmed that the combination of its proprietary cancer vaccine and anti-PD-1 produced a higher tumor growth inhibition effect than monotherapy.

Recently, Moderna and Merck met the primary endpoints in an interim analysis of the global Phase 3 “INTerpath-001” trial, which evaluated the combination of the personalized neoantigen therapy “Intismeran Autogen” and Keytruda, demonstrating significant improvements in recurrence-free survival (RFS) and distant metastasis-free survival (DMFS). Given that personalized neoantigen mRNA therapeutics have demonstrated success in global late-stage clinical trials, the clinical potential of related platforms is gaining momentum.

CG Invites plans to integrate neoantigen prediction, mRNA design, and immune activation optimization technologies into a single platform and continue research using samples derived from cancer patients, as well as follow-up preclinical studies.

A CG Invites official stated, “As the therapeutic potential of personalized mRNA cancer vaccines has become more concrete following the results of the global Phase 3 trial, we plan to further refine our proprietary platform and enhance its clinical applicability through subsequent preclinical studies.”