[Seungkwon Kim, Edaily Reporter] Shares of Samik Pharmaceutical, JW Shinyak, and Voronoi rose sharply on November 10 as the KOSPI and KOSDAQ both rebounded by more than 4%, drawing buying interest in small- and mid-cap pharmaceutical and biotech stocks.

Samik Pharmaceutical surged to its daily limit without any new disclosure or clear catalyst. Analysts note that the three companies are pursuing very different growth paths, and that short-term trading momentum should be distinguished from long-term technology value.

Samik Pharmaceutical Hits Daily Limit Without a Catalyst

Samik Pharmaceutical closed up 29.95%, or 1,920 won, at 8,330 won, according to KG Zeroin MP Doctor. No disclosure or business news explained the surge. The market appears to have renewed its expectations for the company’s long-acting injectable platform and its pipeline of hair loss treatments.

The company is developing long-acting injectables using its in-house microsphere platform, UniSphero. In September, it registered a patent for a long-acting formulation of the immunomodulatory peptide thymosin alpha 1, which reduced first-day drug release to 23.7% from 49.9% in the comparison group and sustained release for over 28 days.

Some, however, argue that it is a stretch to interpret this as a patent for a hair loss drug. Its alopecia areata candidate, SLIM2401, is based on baricitinib, while thymosin alpha 1 corresponds to SLIM2402, a candidate for oncology and immune support. SLIM2401 has not yet entered clinical trials. Critics point out that patent registration and clinical efficacy are separate milestones, urging caution in interpreting the stock’s rally.

JW Shinyak, Up 16% on the Back of Existing Hair Loss Sales

JW Shinyak closed up 16.35%, or 345 won, at 2,455 won. Although there were no new contracts or clinical results, its existing hair loss treatment sales and co-development prospects appear to have boosted investor sentiment.

The company sells finasteride-based hair loss treatments and hair and scalp care products, which is seen as setting it apart from companies grouped under the theme based solely on expectations. It is also co-developing AD-303, a topical hair loss treatment from Mujin Medi, alongside Yuhan and Medica Korea. Because the agreement can be terminated if trials fail, analysts say actual clinical results need to be monitored closely.

Third-quarter standalone revenue rose 3.3% year-over-year to 21.26 billion won, while operating profit fell 3.1% to 2.61 billion won. The key factor will be whether cost-cutting measures—including the closure of its unused quasi-drug manufacturing business—translate into improved profitability.

Voronoi, Up 15% on VRN11 Data, but Funding Burden Remains

Voronoi closed up 14.67%, or 14,300 won, at 111,800 won, reflecting expectations for recent lung cancer drug data and follow-up results next year.

Its lead candidate, VRN11, targets EGFR-mutant non-small cell lung cancer. Phase 1 data presented at ESMO in October showed a 95% intracranial disease control rate among 20 patients with brain metastases, with lesions disappearing completely in four.

Clinical costs, however, are expected to weigh on the stock. Voronoi is seeking approximately 80 billion won in convertible bonds to fund global trials of VRN11. A company official said patient enrollment requests from global principal investigators exceeded expectations, increasing funding needs, and added that several major global pharmaceutical companies have shown interest and talks are ongoing.

Shinhan Securities analyst Eom Min-yong expects that competitive results in Tagrisso-naive patients in the first half of next year could pave the way into the first-line treatment market.