[Edaily Reporter Kim Jinsoo ] On the 1st, the KRX Healthcare Index rose 4.53% compared to the previous trading day, bringing a rare breath of fresh air to the pharmaceutical and biotech industry. Amid this, GI Innovation Inc.(358570)and #G2GBIO, Inc. drew investors’ attention by raising expectations for technology exports.

AbClon Inc.(174900)xml-ph-0001@deepl.internal has continued to ride a wave of optimism, rising for three consecutive trading days since announcing the expansion of indications for “AC101,” a compound previously licensed to Henryus.

GI Innovation Inc. Anticipates Third-Party Technology Export of Allergy Treatment

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GI Innovation Inc.’s stock price closed the regular session at 9,540 won, up 20% from the previous day. The rise in GI Innovation Inc.’s stock price is attributed to expectations regarding the potential for a global technology export of the allergy treatment “Resigercept (YH35324·GI-301),” which the company is jointly developing with Yuhan Corporation.

Resigercept is an allergy treatment candidate discovered by GI Innovation Inc. In July 2020, GI Innovation Inc. signed a technology export and joint research agreement with Yuhan worth a total of 1.409 trillion won. The upfront payment was 20 billion won, while the remaining 1.389 trillion won consists of milestone payments tied to clinical development, regulatory approval, commercialization, and sales. Recurring royalties based on net sales are separate.

If Yuhan Corporation exports the global commercialization rights for Resigersept to a third party, GI Innovation Inc. will receive 50% of the proceeds from that technology export. Consequently, Yuhan Corporation’s global technology export could not only provide GI Innovation Inc. with additional cash inflows but also lead to the securing of milestones based on subsequent development progress and royalties following commercialization.

Kim Yeol-hong, Executive President of Research and Development (R&D) at Yuhan Corporation, expressed high hopes for a technology export last May regarding Resigercept, stating, “We expect to have good news to share in the third quarter.” Consequently, the market is interpreting this as a sign that a technology export is likely to occur soon.

A Yuhan Corporation official stated, “The timing of the technology export may vary depending on contract negotiations,” adding, “For Resigercept, we plan to maximize market value early on not only through an aggressive technology export strategy but also by establishing a ‘New Co’ backed by domestic and international funding.”

G2GBIO, Inc. Pursues Global Technology Export of ‘InnoLAMP’

G2GBIO, Inc. stock price closed at 42,700 won, up 20.79% from the previous day. The rise in G2GBIO, Inc. stock price is attributed to the expansion of the long-acting injectable (LAI) market and the company’s announcement of plans to fully launch the global commercialization of ‘InnoLAMP.’

In a notice posted on its website late last month, G2GBIO, Inc. stated, “As demand for long-acting injectables (LAIs) grows, particularly in the diabetes and obesity treatment markets, interest from global pharmaceutical companies in our proprietary sustained-release platform, ‘InnoLAMP,’ has also increased.”

According to G2GBIO, Inc., global pharmaceutical companies are reviewing various platforms to secure long-acting formulations suited to specific drug characteristics, and InnoLAMP is attracting attention thanks to its proven polymer materials, high drug loading capacity, scale-up capabilities, and competitive patent portfolio.

In line with this trend, G2GBIO, Inc. is expanding the scope of InnoLAMP’s application from semaglutide to high-dose dual- and triple-action agents such as cagrilinotide, terzepatide, and retatruotide. The company is also developing a long-acting formulation of cagrisema—a combination of cagrilinotide and semaglutide—and has secured a related microparticle patent.

A G2GBIO, Inc. official stated, “Based on this, we are collaborating with numerous global pharmaceutical companies, and partnership discussions with a global firm announced earlier this year are proceeding as planned,” adding, “We expect the collaboration with our global partners, which has been ongoing, to yield concrete results starting in the fourth quarter of this year.”

AbClon Inc.: Enhancing the Value of AC101 While Reducing the Risk of Technology Return

AbClon Inc.’s stock price rose 42.2% in just three trading days, from 19,310 won on the 28th of last month to 27,450 won on the 1st of this month. This is attributed to expectations that AbClon Inc.’s future revenue will increase as the scope of development for “AC101” (HLX22)—a HER2-targeted antibody drug that AbClon Inc. licensed to Henryus—has been expanded.

AC101 is a new drug candidate that AbClon Inc. discovered in-house and licensed to Henlius with global rights. Under the agreement, Henlius bears the costs of clinical development and commercialization, while AbClon Inc. receives milestone payments based on development progress and sales royalties. According to AbClon Inc., Henlius recently expanded the AC101 clinical program by adding new clinical trials to the existing ones for gastric and breast cancer, bringing the total number of indications under study to nine.

From AbClon Inc.’s perspective, this is significant because the potential scale of royalties it can receive from AC101 alone has grown substantially. This is because AbClon Inc. can expect increased revenue from expanded sales should approval and commercialization occur for additional indications, without having to bear the costs of large-scale late-stage clinical trials directly. It is also noteworthy that this move has reduced the risk of clinical failure for specific cancer types.

In particular, with frequent instances this year of domestic pharmaceutical and biotech companies—such as CG Invites’ CG-806, FutureChem Co., Ltd.’s FC303, and HanmiPharm’s Belvarapenib—having their technologies returned after exporting them to the global stage, the importance of not only the initial technology export but also the sustainability of subsequent development is being emphasized. Regarding AC101, the risk of technology return can be considered low, given that Henlius is continuing its research while expanding the range of indications.

An AbClon Inc. official stated, “There is a significant risk of technology being returned when a company relies on just one or two drug candidates. Nowadays, simply succeeding in a technology export is no longer enough to attract significant attention; it has become crucial to carefully assess whether the company can successfully navigate the process through to subsequent clinical trials.”