Investor Sentiment Lifted by Expectations of ‘Tangible Results’ Ensol Bio & L&K BioMed Surge[K-...

by한광범 기자
2026.02.02 08:01:06

[Han Kwangbeom, Edaily Reporter] On the 23rd Ensol Biosciences (Ensol Bio) and L&K BioMed demonstrated strong performance in the pharmaceutical and bio stock market.

Moving beyond vague expectations, the companies drew significant market confidence by confirming tangible momentum, including clinical approvals and preemptive investments for global expansion.

Ensol Biosciences stock trend on Jan 24.(Image=MP Doctor)

According to KG Zeroin MP Doctor Ensol Bio closed at 13,540 won up 14.94% reaching near the upper circuit limit (15% for KONEX) after announcing that the Ministry of Food and Drug Safety (MFDS) approved the Phase 3 clinical trial plan (IND) for its knee osteoarthritis treatment candidate, ‘E1K’ (Engedi 1000).

With this approval, Ensol Bio is evaluated to be one step closer to achieving the title of the world’s first Disease Modifying Osteoarthritis Drug (DMOAD). The Phase 3 trial will be conducted on 364 patients with moderate (KL Grade 3) knee osteoarthritis at 20 major hospitals across Korea including Samsung Medical Center and Uijeongbu St. Mary's Hospital.

The clinical trial focuses on proving E1K’s potential as a DMOAD, which treats the underlying cause of the disease rather than simply managing pain. The research team plans to establish efficacy and safety by comparing the E1K group with an active control group (HA) among patients with an activity based pain score of 60mm or higher.

In its public disclosure, Ensol Bio stated, "If the Phase 3 trial confirms the efficacy and safety of repeated E1K administration regarding pain relief functional improvement, and structural recovery it is expected to provide a new clinical alternative for knee osteoarthritis patients who currently have limited treatment options for cartilage regeneration."

Industry experts anticipate that if E1K’s efficacy is finalized, Ensol Bio could secure licensing deals exceeding 1 trillion won. The market value is rising due to an aging population; the global osteoarthritis treatment market is projected to grow from $8.2 billion in 2022 to $18.4 billion by 2032. The emergence of a fundamental treatment capable of cartilage regeneration is expected to accelerate this growth further.

Kim Hae jin CEO of Ensol Biosciences said "E1K has proven its dual effect on pain treatment and joint structure improvement in both preclinical and clinical stages. By successfully completing Phase 3 we aim to provide global patients with a fundamental treatment option."

He added "Since there is currently no DMOAD available worldwide, E1K will be a breakthrough game changer in the global market if it passes Phase 3."

L&K BioMed stock trend on Jan 24.(Image=MP Doctor)

Medical device specialist L&K BioMed also reported news of large-scale funding and facility investment. The company’s stock rose 9.45% to close at 14,290 won marking two consecutive days of sharp upward momentum.

L&K BioMed recently secured a total of 37 billion won through measures such as issuing convertible bonds (CB). A key highlight of this funding is the expansion of its new factory. The company plans to invest 160 billion won half of the CB funds into production facilities. This is a preemptive move to meet global standards and prepare for significant growth.

Currently, L&K BioMed operates a production facility in Yongin, Gyeonggi Province covering its entire range of spinal implants. It also utilizes partners like A1 Meditech to optimize the production of spinal screws, cages, and plates.

The company’s current production capacity is estimated at approximately 100 billion won in annual revenue. With the new funds, L&K BioMed plans to double this capacity to a 200 billion won level.

The reason for this expansion is clear: the company anticipates a surge in global demand once a distribution contract for spinal implant products is finalized with a global distributor with whom terms are currently being negotiated.

Analysts expect L&K BioMed’s average revenue growth rate to reach 70% over this year and next once the partnership is signed, with revenue projected to surpass 100 billion won for the first time next year.

Furthermore L&K BioMed is negotiating to expand its business regions beyond the U.S., Taiwan and Hong Kong to include Europe and Africa. This diversification aims to stabilize profits and mitigate regional risks, as the U.S. currently accounts for 70% of its revenue.

Notably, the company plans to utilize the new factory as a dedicated facility for ‘BlueX-TM’ an expandable spinal implant developed and refined specifically for the contract with the global distributor. L&K BioMed obtained FDA clearance for the product last year completing preparations for the distribution deal.

An official from L&K BioMed stated, "Once the new factory is expanded it will be used to produce the products contracted with the global distributor as well as cervical products among our expandable implant portfolio."