DRTECH Surges on Return to Market; HLB Innovation, L&K Biomed Rise[K-bio pulse]

[Kim Jin Soo, Edaily Repoeter] On Sept. 10, DRTECH, which resumed trading following the completion of a reverse stock split, saw sharp swings in its share price. The medical imaging company drew investor attention as expectations grew over the global expansion of its flagship surgical C-arm systems.

Shares of HLB Innovation and L&K Biomed also advanced, driven respectively by expectations for upcoming clinical data from a CAR-T therapy and a potential global distribution agreement for spinal implant products.

DRTECH stock trend. (KG Zeroin)

DRTECH Rises on FDA Clearance After Trading Resumes

According to MP DOCTOR, formerly MarketPoint, operated by KG Zeroin, DRTECH hit the daily upper limit intraday on its first day of trading following the completion of its reverse stock split. The stock later gave up much of its gains and closed at KRW 5,040, up 5.00% from the previous session.

Investor interest was largely attributed to U.S. Food and Drug Administration clearance for EXTRON 6, DRTECH’s premium surgical C-arm system.

The EXTRON series combines DRTECH’s in-house video detectors with proprietary image-processing technology to provide surgical diagnostic imaging. EXTRON 6 is designed primarily for orthopedic procedures and features an over-tube X-ray generator configuration along with a wide range of movement and rotation, allowing imaging from various angles even in confined operating rooms.

The system also incorporates low-dose imaging technology. According to DRTECH, radiation exposure can be reduced to about one-fifth of competing systems on average and, in some cases, to as little as one-fifteenth.

DRTECH currently sells EXTRON 3, 5, 6 and 7, while developing EXTRON 2 and 4, a mini C-arm system, and EXTRON 8 and 9, which are designed to provide 3D imaging. Through a broader lineup, the company aims to address demand across different hospital sizes, surgical specialties and price segments.

Sales of the EXTRON series are also growing rapidly. In the first half of this year, EXTRON sales rose 52% year over year to KRW 9.4 billion, supported by increased supply to the U.S., Europe and the Middle East. DRTECH’s total first-half revenue increased 17% to KRW 68.9 billion, marking a record high for a half-year period.

Operating profit reached KRW 1.3 billion, reversing an operating loss of KRW 2.6 billion a year earlier.

Based on the FDA clearance, DRTECH plans to expand sales in the U.S. while strengthening its presence in Europe and the Middle East, global B2B channels and government procurement markets.

The company also expects the reverse stock split to help improve the consistency of its capital structure, maintain an appropriate number of shares in circulation and contribute to greater share-price stability. If profitability continues to improve, this could also have a positive impact on per-share value.

“We intend to build on the strong performance in the first half and make this year a turning point for both quantitative and qualitative growth,” a DRTECH official said.



HLB Innovation Rises on Expectations for CAR-T Clinical Data

Shares of HLB Innovation closed at KRW 16,590, up 10.38% from the previous session.

The gain was attributed to growing expectations surrounding interim Phase 1 data for SynKIR-310, a blood cancer CAR-T therapy being developed by its U.S. affiliate Verismo Therapeutics.

SynKIR-310 is a CD19-targeting CAR-T therapy based on Verismo’s KIR-CAR platform. The platform is designed to activate when tumor cells are detected and then return to an inactive state after killing the target cells. In preclinical studies, the mechanism was associated with lower secretion of inflammatory cytokines compared with some conventional CAR-T approaches.

Early clinical results have also shown encouraging efficacy signals. A patient with follicular lymphoma who received the lowest dose of SynKIR-310 achieved a complete response, or CR, 28 days after treatment, with the response maintained for more than six months.

HLB Innovation expects the upcoming interim data to provide a clearer picture of both efficacy and safety as more patients are enrolled and higher dose levels are evaluated.

However, the specific scientific meeting where the data will be presented has not yet been confirmed. Industry observers expect the interim Phase 1 results for SynKIR-310 to potentially be unveiled at the American Society of Hematology, or ASH, annual meeting scheduled for December.

“SynKIR-310 has secured initial safety data and has now progressed to evaluation at higher dose levels,” an HLB Innovation official said.



L&K Biomed Gains on Market Rumors of Global Distribution Deal

Shares of L&K Biomed closed at KRW 5,590, up 7.50% from the previous session.

The stock has rallied from KRW 3,860 on Sept. 3 to KRW 5,590 on Sept. 10, gaining about 45% over five trading sessions.

The recent increase appears to have been fueled by market speculation that the company is close to signing a distribution agreement with a global company for its spinal implant products.

L&K Biomed is currently pursuing distribution agreements with several companies, including global players. In particular, it is discussing agreements to supply spinal implants in Asian and European markets.

The U.S. had originally been included in the negotiations, but the potential counterparty later unilaterally discontinued discussions concerning U.S. distribution rights.

An agreement covering Asia is expected to be finalized first. L&K Biomed plans to use the Asian distribution partnership to strengthen brand recognition in the region.

To reduce execution risk in Europe, the company is also holding discussions with multiple European companies in addition to the global company with which it has already been negotiating. These firms are considered competitive players with strong local distribution networks.

“There is no clear reason we can point to for the recent share-price increase,” an L&K Biomed official said. “Negotiations with a global major company are still ongoing.”