[NA Eun-kyung, Edaily Reporter] Korean stocks rebounded on October 27, but several biotech stocks suffered a “Black Tuesday.” The KOSPI rose 3.09% to 5,638.34, and the KOSDAQ gained 2.29% to 743.83. A buy-side sidecar temporarily suspended program buying on the KOSPI.

G2GBIO and CMG Pharmaceutical fell 12.94% and 11.39%, respectively. VUNO, which had hit its daily upper limit the previous day, dropped 8.46% to 7,030 won. OliX Pharmaceuticals declined for the fourth consecutive session, although the company confirmed it had resubmitted its New Zealand clinical trial application for OLX301A.

OliX Awaits Ethics Approval

OliX closed at 90,600 won, down 5.72%, according to KG Zeroin’s MP Doctor. The stock has lost 15.25% since Oct. 21.

“The application was rejected due to administrative issues requiring additional documentation, as recommended by the local ethics committee,” an OliX official said. “We recently completed the resubmission.”

OLX301A is an siRNA-based candidate for macular degeneration. Following a U.S. Phase 1 trial, OliX plans a Phase 2a study in patients with geographic atrophy, a condition characterized by progressive retinal tissue loss.

On Oct. 12, OliX disclosed that New Zealand’s ethics committee had rejected the application because its submissions did not meet local ethical and legal requirements. The company stated that the decision was separate from Medsafe’s regulatory review. OliX is now awaiting another ethics decision.

The company is also awaiting the clinical study report (CSR) for OLX702A, its MASH and obesity candidate licensed to Eli Lilly and Co. The Australian multiple-dose Phase 1 trial completed its final patient visit in May.

“We expect the CSR by year-end, with no schedule changes at present,” the official said.

Interim findings disclosed earlier showed liver fat decreasing by more than 70% in one participant. Some participants reached levels below 5% within one to two months. These were preliminary findings, not final topline results.

OliX must complete Phase 1, while Lilly will handle subsequent development. When asked whether Lilly would decide on Phase 2 after receiving the CSR and whether plans included a combination with tirzepatide, the official said decision timelines were confidential, adding, “We remain in continuous communication with Lilly.”

G2GBIO Clarifies Evaluation Agreement

G2GBIO closed at 39,350 won, down 12.94%, following media reports questioning the preliminary nature of its UBT agreement and the lack of a separate disclosure by UBT’s parent company.

The agreement assesses whether G2GBIO’s InnoLAMP platform can transform an undisclosed UBT candidate into a long-acting injectable.

“This is a preliminary verification stage for technology licensing,” G2GBIO said through its investor relations channel. Successful results could lead to a subsequent agreement, but no licensing deal is guaranteed.

The company stated that disclosure decisions depend on local regulations and internal policies. It added that a partner’s silence does not undermine the substance of the collaboration.

Separate partner announcements are not standard practice. The licensing deals between Rznomics and Lilly, as well as between Orum Therapeutics and Vertex Pharmaceuticals, were announced by the Korean companies without separate press releases from the partners. A major transaction for a Korean biotech company may be relatively small for a global pharmaceutical company.

Still, Peptron illustrates the risk. Its market value once reached 9 trillion won following a 2024 evaluation agreement with Lilly, but fell to about 2.4 trillion won after the evaluation ended without a licensing deal this month.

“Each evaluation differs in terms of technology, target molecule, and conditions,” G2GBIO said. “Other companies’ past outcomes cannot determine ours.”

Hanmi Pharmaceutical Rebounds After Share Cancellation Plan

Hanmi Pharmaceutical fell to 345,000 won in after-hours trading following its earnings release, before recovering to the previous day’s closing price after announcing a share cancellation.

Third-quarter revenue rose 4.2% to 377.4 billion won, but operating profit fell 31.3% to 37.8 billion won. Beijing Hanmi Pharmaceutical’s sales fell 15.8% and operating profit dropped 75.1% as stricter collection controls restricted shipments.

Hanmi Pharmaceutical suspended new business with affected distributors, strengthened internal controls, and commissioned an external special audit.

The company will cancel 85,316 treasury shares—representing 0.67% of outstanding shares—on November 2. Their book value is approximately 28.3 billion won.