[Kim Saemi, Edaily Reporter] South Korean biotech stocks saw sharply divergent performance on November 5. NGenBio hit the daily upper price limit after announcing a patent for leukemia diagnostic technology, while Proteina surged more than 23% on plans to raise 36.5 billion won ($26 million). In contrast, AdBioTech plunged more than 18% after delaying convertible bond payments and adding provisions that could increase shareholder dilution.

NGenBio Hits Upper Limit but Remains a Penny Stock

NGenBio jumped 29.89% to close at 804 won, hitting the daily upper limit after announcing a Korean patent for next-generation sequencing (NGS) technology used to detect FLT3-ITD mutations associated with acute myeloid leukemia (AML).

The technology uses a proprietary algorithm to re-evaluate mutation candidates identified by existing analysis software, filtering out false positives and duplicate results. NGenBio stated that its evaluation showed a 94.5% reduction in false-positive mutations, although it did not disclose the number of samples tested or provide detailed information on false-negative results.

The patented technology is already integrated into the company’s MRD AccuPanel AML FLT3 diagnostic panel and analysis software. It will also be applied to a new HEME panel scheduled for release in the first quarter of 2027. However, the new panel is intended for research use only, leaving uncertainty regarding its near-term revenue contribution.

Despite the rally, NGenBio remains subject to a regulatory warning. The company was designated a “managed stock” on October 1 after its market capitalization fell below 20 billion won. The Korea Exchange subsequently warned that its shares had traded below 1,000 won for 25 consecutive trading sessions, potentially triggering an additional designation criterion.

Even after hitting the daily upper limit, NGenBio closed at just 804 won, requiring a further 24.4% gain to regain the 1,000-won threshold. Its market capitalization remained around 12.9 billion won.

A company official stated that there were no additional positive developments beyond the patent announcement, adding that the stock’s ability to maintain its upper-limit gain through the close was surprising.

Proteina Surges 23.7% on $26M Funding

Proteina surged 23.74% to 52,900 won after announcing plans to raise 36.5 billion won, just 15 months after its KOSDAQ listing.

The company disclosed after the market closed on November 4 that it would issue 29.2 billion won in convertible bonds (CBs) and approximately 7.3 billion won in convertible preferred shares (CPS).

Participants include funds and investment firms affiliated with Mirae Asset, Celltrion, Aju IB Investment, Kiwoom Investment, and Timefolio. Notably, several existing institutional investors are participating in the financing.

“The fact that institutional investors who have supported us for a long time are investing again is highly significant,” said a Proteina official. “We raised the funds primarily from existing investors to finance new capital expenditures.”

The convertible bonds (CBs) carry a zero coupon and a 1% annual yield to maturity. The initial conversion price for both the CBs and the convertible preferred shares (CPS) is 48,061 won, a 12.4% premium to the closing price of 42,750 won on November 4.

Of the total proceeds, 26 billion won will fund an artificial intelligence (AI) biofoundry, while 10.5 billion won will support research on the company’s PPI Landscape protein-interaction analysis platform and proprietary drug candidates.

Proteina stated that the biofoundry investment is tied to its August memorandum of understanding with Twist Bioscience to collaborate on large-scale experimental validation of AI-generated drug candidates.

However, this financing comes despite the company having raised approximately 21 billion won in its July 2025 IPO and still holding roughly 19.4 billion won in unspent IPO proceeds in deposits as of the end of the first half.

Its financial performance has also fallen well short of listing projections. First-half revenue was approximately 500 million won, compared with a full-year forecast of 14.8 billion won. Its first-half operating loss reached 8.7 billion won, already exceeding the projected full-year loss of 2 billion won. The company declined to provide specific revenue guidance for the new investment.

AdBioTech Plunges 18.5% on Bond Delays and Dilution Risks

AdBioTech tumbled 18.53% to 1,385 won as repeated delays in convertible bond funding and newly added conversion-price reset provisions weighed on investor sentiment.

On November 3, the company submitted three revised disclosures covering its 10th through 12th convertible bond (CB) issuances, totaling 14.3 billion won. The payment date was pushed back five days, from November 6 to November 11, while the issuance terms were also revised. All proceeds are earmarked for acquiring securities in another company.

The 10th convertible bond issuance, worth 2 billion won, has been revised 10 times since it was first announced in May. The 11th issuance, worth 11.3 billion won, has undergone eight revisions since June. The 12th issuance, worth 1 billion won, was also delayed just five days after its initial announcement.

More significantly, the revised terms allow conversion prices to be adjusted downward every seven months, potentially falling 30% from the initial 1,999 won to 1,400 won.

If all bonds are converted into shares, the number of newly issued shares could increase from approximately 7.15 million to as many as 10.21 million, raising dilution risks for existing shareholders.

The revised terms also change the interest payment frequency from quarterly to monthly. The 11th and 12th convertible bonds (CBs) carry an annual coupon rate of 6%, while the 10th carries a 3.5% coupon rate. If all three issuances are completed, annual coupon interest expenses would total approximately 808 million won.

The 11th and 12th convertible bonds also contain provisions requiring early repayment if AdBioTech reports a consolidated operating loss in the first quarter of 2027.

"Repeated payment delays have raised uncertainty over whether the financing will actually be completed as scheduled," said a biotech industry source. "The additional dilution risk from the reset clauses appears to have further weakened investor sentiment."