[Edaily Reporter Kim Seung-kwon ] On the 3rd, the domestic pharmaceutical and biotech sector saw notable volatility in stocks linked to growth themes such as obesity, medical aesthetics, hair loss, and immuno-oncology platforms.

On that day, #GC WellBeing surged approximately 17% on the back of Phase 3 clinical trial results for its topical fat-dissolving injection “RZL-012” aimed at securing approval in China, while JW SHINYAK CORPORATION(067290)rose about 11% on expectations of market expansion for hair loss treatments and inclusion in the national health insurance coverage. Genexine, Inc.(095700)also climbed about 16%, drawing market attention due to the value of its DNA vaccine and immuno-oncology platforms, as well as the resolution of risks related to international legal disputes.

GC WellBeing Bets on ‘1–2 Doses’… Success in China’s Phase 3 Clinical Trial Acts as Catalyst

GC WellBeing closed at 10,750 won, up about 17% from the previous trading day. News that RZL-012, currently under development by partner Raziel Therapeutics, met key efficacy and safety endpoints in a Phase 3 clinical trial in China spurred buying interest.

This clinical trial is a large-scale pivotal study jointly conducted by Raziel and JuveStar—a subsidiary of Raziel’s Chinese partner, Fosun Pharma—involving 480 adult patients with double chins (submental fat). RZL-012 met both primary and secondary efficacy endpoints at 84 days following a single treatment cycle, demonstrating a significant fat reduction effect and good safety profile with a response rate more than 30 percentage points higher than that of the placebo group. Based on these results, Fosun Pharma and Rajiel plan to submit a New Drug Application (NDA) to China’s National Medical Products Administration (NMPA) by the end of the year and will also pursue additional clinical trials to expand indications beyond the double chin to areas such as the abdomen and thighs.

RZL-012 is a next-generation topical lipolytic drug candidate that works by irreversibly destroying targeted fat cells; unlike existing products that require multiple treatments, it is designed to induce fat reduction with just one or two administrations. Last June, GC WellBeing acquired the domestic rights to RZL-012 from Rajiel and simultaneously made a strategic equity investment (SI).

A GC WellBeing official stated, “China is one of the key regions in the global medical aesthetics market, and the results of this Phase 3 clinical trial have confirmed the commercial potential of RZL-012.” The official added, “As the obesity treatment market grows and demand for body contouring expands, we will build a differentiated portfolio that bridges obesity and medical aesthetics, centered on RZL-012.”

However, success in the Chinese clinical trial does not guarantee domestic approval or a specific launch date. With domestic regulatory strategies, drug pricing, and verification of clinical differentiation compared to competing products still pending, the key factors determining the company’s medium- to long-term enterprise value are expected to be the domestic commercialization schedule and the actual penetration rate into medical institutions.

JW SHINYAK CORPORATION Posts Consecutive Gains on Expectations of Hair Loss Treatment Coverage… Clinic Sales Network Drives Earnings

JW SHINYAK CORPORATION closed at 3,430 won today, up about 11%. With hair loss treatments gaining attention as a global next-generation growth sector following obesity treatments, analysts attribute the strong demand for related stocks to reports that the government is considering expanding health insurance coverage for hair loss treatments in the second half of the year. However, some cautious observers argue that market expectations regarding the policy have already been factored in, as the decision on whether coverage will be granted and its scope have not yet been finalized.

JW SHINYAK CORPORATION offers oral hair loss treatments such as “Monad Tablets” (containing finasteride) and “Dutamoa Tablets” (containing dutasteride). It has also secured domestic distribution rights for the topical minoxidil solution “Mydil” and the global hair loss treatment “Rogaine Foam,” establishing a comprehensive product lineup that spans both oral and topical treatments. Its sales network, specialized for the clinic market—including dermatology, urology, and internal medicine—is also cited as a strength. The company has introduced a hair care product line in collaboration with Galderma Korea and France’s Pierre Fabre, and is jointly developing “AD-303,” a topical male hair loss treatment, with Moogene Medi and Yuhan Corporation.

Group synergy is another key point to watch. Affiliated company JWPHARMACEUTICAL recently acquired “Bofangglutide,” a once-every-two-weeks obesity treatment worth 120 billion won, from China’s Gan’anli Pharmaceuticals, and is also independently developing “JW0061,” a new hair loss drug candidate with a novel mechanism of action. A division of labor—in which JWPHARMACEUTICAL handles the hospital market, new drug development, and global technology commercialization, while JW SHINYAK CORPORATION handles co-marketing in the clinic market—is already in place for existing products such as “Livaro.”

An official from JWPHARMACEUTICAL stated, “JW SHINYAK CORPORATION supplies medications specialized for the clinic market—including dermatology, urology, and internal medicine—while JWPHARMACEUTICAL has strengths in the hospital-level market, in-house new drug R&D, and global technology commercialization,” adding “Once a new drug developed by JWPHARMACEUTICAL is commercialized, collaboration with JW SHINYAK CORPORATION through joint sales in the clinic market is also possible,” the spokesperson said.

Genexine, Inc.’s Complete Victory in a 200 Billion-Won International Arbitration Case Back in the Spotlight… Shares Up 16%

Genexine, Inc. closed at 3,260 won today, up about 16%. Although there were no separate new announcements, analysts attribute the buying momentum to renewed market attention on the ruling in favor of Genexine in the International Chamber of Commerce (ICC) arbitration case—which involved the clinical administration device for the cervical cancer DNA vaccine “GX-188E”—against U.S.-based Ichor Medical Systems, as well as the subsequent enforcement proceedings in the U.S.

Ichor claimed that Genexine, Inc. used its “TriGrid” electroporation device to obtain clinical approval and then unauthorizedly replaced it with the domestic “OrbiJector” device, seeking damages of up to $145.57 million (approximately 200 billion won). However, the ICC arbitration tribunal ruled that there was insufficient evidence that Genexine, Inc. had reverse-engineered, analyzed, or used the TriGrid without authorization, and dismissed all of I-Cor’s claims. It also ordered I-Cor to pay approximately 2.2 billion won in legal fees and other costs incurred by Genexine, Inc. On the 31st of last month (local time), Genexine, Inc. filed a motion with the U.S. District Court for the Southern District of California to confirm and enforce this award, requesting recognition of the award under the New York Convention and the Federal Arbitration Act.

Apart from resolving legal risks, some observers point out that any future revaluation of the stock price will depend on the performance of the pipeline. They note that the U.S. court’s approval and enforcement procedures remain pending, and that to restore the enterprise value of its DNA vaccine platform, Genexine will need to demonstrate success in clinical development and commercialization—separate from winning the dispute.

In fact, within the securities industry, the prevailing view is that when evaluating R&D-focused biotech companies like Genexine, Inc., one should consider the rate of cash burn, R&D priorities, the competitiveness of clinical trial designs, and partnering potential—rather than focusing solely on stock price fluctuations driven by individual news events. An industry official stated, “While this upward trend can be interpreted as the result of expectations for the resolution of legal uncertainties combined with demand for a revaluation of technological assets, its sustainability depends on future business performance, so investors should exercise caution.”