[Edaily Reporter Kim Jinsoo ] On the 13th, in the pharmaceutical and biotech sector, shares of Lunit Inc.(328130)and DRTECH Corporation(214680)rose in tandem, driven by improved earnings. Lunit Inc. attracted investor interest due to revenue growth and a reduction in operating losses, while DRTECH Corporation saw its stock rise on expectations of expanded supply of industrial non-destructive testing equipment to the Middle East, coupled with growth in its medical device business.

In contrast, Curiox Biosystems Co., Ltd.(445680)saw its stock price plummet following news that it had filed a lawsuit against a global biotech company alleging trade secret infringement and breach of contract. Although the lawsuit is intended to protect Curiox Bio’s technology, investor sentiment appears to have been dampened by the uncertainty surrounding the litigation.

Lunit Inc. Rises on Improved Earnings Trend

According to KG Zeroin’s MP Doctor (formerly Marketpoint), Lunit Inc.’s stock price rose as much as 17.8% intraday to 16,160 won before dipping slightly to close up 9.48% at 15,020 won. Improved earnings are cited as the main driver behind Lunit Inc.’s stock price rise.

On the 12th, Lunit Inc. announced that it recorded consolidated revenue of 22.2 billion won and an operating loss of 10.7 billion won for the third quarter of this year. Revenue increased by 13% year-over-year, while the operating loss decreased by 50%.

In particular, the EBITDA loss stood at 3.5 billion won, a 77% decrease compared to the same period last year. This marks the lowest level in 14 quarters since the first quarter of 2023. Cumulative revenue for the first three quarters of this year also reached 68 billion won, a 20% increase year-over-year, setting a new all-time high.

Furthermore, recent purchases by pension funds are believed to have contributed to the rise in the stock price. Data shows that pension funds made net purchases of approximately 10.1 billion won worth of shares in Lunit Inc. between the 14th of last month and the 12th of this month. Although there was a net sale of about 11.4 billion won on the 11th, they made a net purchase of approximately 3.1 billion won on the 12th, indicating an overall buying trend.

The market views this as a sign of heightened expectations for improved profitability, as Lunit Inc. is simultaneously pursuing revenue growth and cost reductions. However, since the company is still posting an operating loss, whether this trend of improving performance will continue is expected to be a key variable affecting the stock’s trajectory.

Lunit Inc. officials stated, “Today’s sharp rise appears to be the result of a combination of recent net buying by pension funds and expectations of improved earnings.”

DRTECH Corporation: Success in Industrial Equipment Following Medical Devices

DRTECH Corporation’s stock price closed at 3,925 won

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up 8.94% from the previous day. This is attributed to expectations of expanded overseas supply of industrial nondestructive testing equipment, as well as the impact of recent improvements in earnings.

DRTECH Corporation announced today that it had obtained final approval for the non-destructive testing procedures involving its industrial bendable detectors from Saudi Aramco and ADNOC, the state-owned oil company of the United Arab Emirates (UAE). This approval is significant in that it goes beyond product performance verification to lay the groundwork for the practical use of digital non-destructive testing equipment in actual industrial settings.

A bendable detector is a digital X-ray detector that can be bent to conform to curved surfaces; it is used to inspect cracks and defects in the welded joints of oil and gas pipelines. DRTECH Corporation expects this approval to lead to expanded product supply in the Middle East.

Business results are also emerging in the North American market. DRTECH Corporation is supplying bendable detectors for 16-inch large-diameter pipes to a major North American NDT specialist, and having recently received approval for 2-inch small-diameter products, the company is preparing for additional deliveries. Going forward, DRTECH Corporation plans to expand its business scope into the aerospace and defense sectors.

Growth is also continuing in the medical device business. Cumulative sales of the “EXPEED” series of video detectors in the third quarter of this year more than doubled compared to the same period last year. Sales of the “EXTRON” surgical C-arm system and the breast cancer diagnostic product line during the same period also increased by 45% and 16%, respectively.

Business performance across each division is translating into improved financial results. DRTECH Corporation’s third-quarter revenue this year reached 34.5 billion won, marking the highest third-quarter figure since the company’s founding. Operating profit stood at 2.2 billion won, maintaining a double-digit profit margin for the second consecutive quarter, while cumulative operating profit for the first three quarters totaled 3.4 billion won.

DRTECH Corporation official stated, “We are gradually establishing a foundation for financial normalization and improved profitability, and this trend is becoming even more pronounced as we recorded double-digit operating profit in the third quarter, following the second quarter.”

Curiox Falls Amid Litigation Uncertainty

Curiox Biosystems Co., Ltd.’s stock price fell 21.75% to 46,400 won. Analysts attribute this decline to market anxiety over uncertainty following news that Curiox Bio had filed a lawsuit against a global biotech company to protect its technology.

On that day, Curiox announced that it had filed a lawsuit against Becton, Dickinson and Company (BD) and Waters Corporation in the U.S. District Court for the Northern District of California, alleging trade secret infringement and breach of contract, among other charges.

This lawsuit pertains to Curiox’s “C-FREE” technology for cell analysis pretreatment without centrifugation. According to Curiox, BD’s Biosciences division had previously entered into a non-disclosure agreement (NDA) with Curiox; this agreement included provisions prohibiting the use of confidential information—through reverse engineering or unauthorized reproduction—for the development of competing products. Subsequently, that division was acquired by Waters.

Curiox maintains that the opposing companies breached the agreement and improperly utilized its technology. Accordingly, the company has petitioned the court for damages and an injunction to prevent the unauthorized use of its technology.

While this lawsuit represents a preemptive move by Curiox to protect its core technology and intellectual property rights, the market appears to be heavily influenced by concerns regarding litigation costs and the uncertainty and risks inherent in the lawsuit itself.

A Curiox Bio official stated, “As the lawsuit is currently pending in court, we have no further comment on this matter.”