[Edaily Reporter KIM SAE-MI ] On the 31st, stock prices in the biotech and healthcare sector showed mixed results depending on individual news. Cellid Co., Ltd.(299660)saw its stock price surge 27% amid concerns over a resurgence of COVID-19, while #Onconic Therapeutics Inc. jumped 22% following the decision to grant a U.S. patent for its new anticancer drug candidate, “Nesuparip.” In contrast, VUNO, Inc.(338220)plummeted 24% on news of a 31.4 billion won rights offering.

Cellid Co., Ltd. Rises 27% on COVID-19 Theme… Phase 3 Vaccine Trial ‘Restarted’

According to KG Zeroin MP Doctor (MP DOCTOR) on that day, Cellid Co

.

, Ltd

.

closed at 2,740 won, up 585 won (27.15%) from the previous day. At one point during the session, the stock rose as high as 2,800 won, with the gain approaching 30%.

The surge is believed to have been driven by concerns over a resurgence of COVID-19. Cellid Co., Ltd.’s stock price has seen significantly increased volatility recently, having also hit the daily price limit of 2,285 won on the 24th. Compared to the closing price of 1,758 won on the 21st, the stock price has risen 55.9% in just six trading days.

Cellid Co., Ltd. has been developing the COVID-19 preventive vaccine “AdCLD-CoV19-1 OMI” based on its proprietary adenovirus vector platform. Cellid Co., Ltd. conducted a global Phase 3 clinical trial comparing AdCLD-CoV19-1 OMI with Pfizer’s “Comirnaty (two-dose regimen)” in adults aged 19 and older. However, the results of the Phase 3 clinical trial for this vaccine fell short of expectations.

According to the Phase 3 clinical trial results released last June, AdCLD-CoV19-1 OMI failed to demonstrate non-inferiority for the primary immunogenicity endpoint. The adjusted geometric mean titer (GMT) ratio 28 days after vaccination was 0.42, with a lower limit of the 95% confidence interval at 0.38, failing to meet the non-inferiority criterion of 0.67. There was also a significant difference in the seroconversion rate (SRR), which was 17.12% in the Cellid Co., Ltd. group and 42.64% in the control group.

Relatively positive results were observed in terms of safety. The overall incidence of adverse events was 34.38% in the Cellid Co., Ltd. group, lower than the 69.96% in the active control group, and the incidence of drug-related adverse reactions also differed, at 26.66% and 66.52%, respectively. No serious drug-related adverse reactions were reported.

Kang Chang-yul, CEO of Cellid Co., Ltd., acknowledged, “It is true that the Phase 3 clinical trial results at the time fell short of expectations,” but emphasized, “After reviewing the full dataset, we confirmed that the safety profile was better than that of the control vaccine.”

A specific timeline for further clinical development has not yet been finalized. The company is considering amending its Investigational New Drug (IND) application by supplementing efficacy data in addition to safety data. Regarding the possibility of submitting an IND application within the year, CEO Kang replied, “We are preparing as quickly as possible,” but added, “Since consultations with the Ministry of Food and Drug Safety are still pending, the specific timeline remains uncertain.”

Onconic Therapeutics Inc. Up 22% on News of Nesuparip U.S. Patent Grant Decision Onconic Therapeutics Inc.’s stock

surged on news

of the U.S. patent grant decision

for its new anticancer drug candidate,

“Nesuparip

.” On that day, Onconic Therapeutics Inc.’s stock price closed at 18,030 won, up 3,260 won (22.07%) from the previous day.

It is believed that investor sentiment was driven by expectations that the extension of Nesuparip’s patent protection period in the U.S. will strengthen the foundation for its future commercialization. Nesuparip is a dual-target synthetic lethal anticancer drug candidate that simultaneously inhibits tankyrase and poly ADP-ribose polymerase (PARP); Phase 2 clinical trials are currently underway for four cancer types: pancreatic cancer, ovarian cancer, endometrial cancer, and gastric cancer.

On that day, Onconic Therapeutics Inc. announced that it had received a decision granting a U.S. patent for a new crystalline form of Nesuparib and its manufacturing method, and had completed payment of the registration fee. The final procedure for the assignment of a patent number by the U.S. Patent and Trademark Office (USPTO) remains. This patent protects a new, high-purity, and highly stable crystalline form of Nesuparib and its manufacturing method, with a term lasting until May 2042. This effectively adds an additional layer of patent protection to the existing substance patent, which is scheduled to expire in 2036.

Internally, the company believes it is still undervalued. An Onconic Therapeutics Inc. official proudly stated, “Onconic Therapeutics Inc. is not merely a company that presents the potential for new drug development; it is a company with proven experience in actually developing new drugs and obtaining approval.”

He continued, “Since our follow-up anti-cancer pipeline is also progressing smoothly, I believe our fundamental structure differs from that of typical biotech companies in the clinical trial phase,” adding, “Considering the company’s technological capabilities and commercialization expertise, it is difficult to say that our enterprise value is being adequately recognized in the current market.”

Shock Over 31.4 Billion Won Rights Offering… VUNO, Inc. Faces “Mounting Challenges” with Convertible Bond Redemption

On this day, the stock price of medical AI company VUNO

, Inc.

plummeted by over 20%. This is believed to be a direct result of the 31.4 billion won rights offering announced after the market closed on the previous trading day.

On that day, VUNO, Inc. closed at 5,590 won, down 24.46% (1,810 won) from the previous trading day. The intraday low dropped to 5,390 won. Trading volume also surged to 256,284 shares, more than 21 times the volume of the previous trading day (12,117 shares). Considering that the closing price on the 28th was 7,400 won, it appears that investors dumped their shares en masse immediately after the capital increase announcement.

VUNO, Inc. announced after the market closed on the 28th that it had decided to conduct a 31.4 billion won rights offering, involving the issuance of 6.3 million common shares, with unsubscribed shares to be sold to the public. The planned issue price is 4,980 won, and the record date for the new share allocation is October 2. Existing shareholders will be allocated approximately 0.45 new shares for every share they hold. Subscription by existing shareholders is scheduled for November 9–10, and the new shares are set to be listed on November 30.

The company plans to use 20 billion won of the raised funds to repay debt, 10.624 billion won for working capital, and 750 million won for other purposes. This means that 64% of the total funds to be raised will be allocated to repaying existing debt rather than growth investments.

Above all, the scale of the capital increase has weighed on the market. The total number of shares outstanding prior to the capital increase is 14,001,823, and the number of newly issued shares alone amounts to 6.3 million. This represents approximately 45% of the existing outstanding shares. Once the capital increase is completed, the number of outstanding shares will increase to approximately 20.3 million. If existing shareholders do not participate in the rights offering, the degree of equity dilution will be significant.

Furthermore, the planned issue price of 4,980 won is 32.7% lower than the closing price of 7,400 won on the 28th. VUNO, Inc. calculated the proposed issue price by applying a 25% discount rate, and the actual issue price may vary depending on future stock prices. Therefore, even if the stock price falls in the future and the actual amount raised is reduced, prioritizing the repayment of the third series of perpetual convertible bonds (CBs)—which have higher priority—will further reduce the funds available for actual business operations or growth.

This rights offering also does not completely resolve the CB issue. In addition to the third series of perpetual CBs, VUNO, Inc. still has the fourth and fifth series of perpetual CBs, each amounting to 10 billion won. According to the company, interest payments on these CBs will begin at the end of next year. This means the company may need to secure additional funds for repayment in the future.

A VUNO, Inc. official explained, “The fourth and fifth series each have 10 billion won remaining, and interest payments will begin at the end of next year,” adding, “There is currently no set repayment plan, and we plan to respond based on market conditions and other factors.” The company expects the results of the new medical technology evaluation—anticipated in the fourth quarter of this year—to serve as a catalyst for future growth.

Meanwhile, VUNO, Inc. plans to hold a shareholder meeting on September 4 to explain the rationale behind the decision to issue new shares.