[Kim Jiwan, Edaily Reporter] On May 23, biotech and healthcare stocks surged across the board on expectations of benefits from government policies and national R&D projects. Withus Pharmaceutical jumped on hopes of expanded insurance coverage for hair loss treatment. Inventage Lab soared again after being selected for a major government project, fueled by momentum surrounding its obesity treatment. Meanwhile, Biosolution rallied as a key beneficiary of the government’s animal testing alternatives policy.

Withus Soars on Hair Loss Treatment Insurance Expansion Hopes

Withus Pharmaceutical surged after news broke that the Democratic Party of Korea is moving to include hair loss treatment under the national health insurance scheme. According to MP Doctor (formerly MarketPoint) operated by KG Zeroin, Withus shares rose 14.58% (1,210) to close at 9,510 KRW.

Jin Sung-joon, head of the Democratic Party’s election policy committee, stated on YouTube on May 22, “We believe the policy of including hair loss treatment (in the national health insurance) must be included again in this election, and we are currently waiting for party leader Lee Jae-myung’s final approval.”

Withus Pharmaceutical official website. (Screenshot by Jiwan Kim, Reporter)

Lee had previously brought national attention to the issue during the 20th presidential election, listing insurance coverage for hair loss treatment as a “small but certain happiness” policy. He famously promoted it with the catchphrase, “Lee Jae-myung is not someone you vote for, he’s someone you plant.” Jin added, “Both preventive and regenerative hair loss treatments are expensive, and although there are concerns about financial burden, the large number of people affected makes it worth reviewing.”

Amid growing policy momentum, Withus is gaining attention as a likely beneficiary. The company is co-developing the world’s first long-acting injectable hair loss treatment “IVL3001” with Inventage Lab and Daewoong Pharmaceutical. Based on finasteride and utilizing microfluidic technology, the injection is designed to maintain its efficacy for up to three months with a single dose, improving patient compliance over daily oral tablets.

IVL3001 has completed Phase 1 and 2 trials in Australia and is now preparing to enter Phase 3. The innovative formulation has generated significant market interest as a potential game-changer in hair loss therapy.

Inventage Lab Jumps on Major National Project Selection

Inventage Lab also climbed sharply after being selected as the lead company for a national R&D project funded by the Ministry of Trade, Industry and Energy. The project aims to develop an AI-based automated manufacturing system for lipid nanoparticles (LNPs) used in nucleic acid therapeutics, along with preclinical development of an mRNA-based obesity treatment. The stock closed 6.71% higher at 42,950 KRW up 2,700 from the previous day.

Kim Joo-hee, CEO of Inventage Lab (Photo=Inventage Lab)

The R&D program, worth approximately 8.5 billion (KRW) over 4 years and 9 months, is led by Inventage Lab in collaboration with Terna Therapeutics and AMsquare. The consortium will focus on integrating AI to design and automate LNP formulations. The ultimate goal is to complete preclinical development of an mRNA therapy for obesity.

Inventage Lab will lead the construction of a digital twin-based automation system and optimize manufacturing processes using its proprietary microfluidics-based LNP platform and GMP-compliant infrastructure. Terna will handle mRNA engineering and specialized LNP development, while AMsquare will develop AI-based predictive models and implement digital twin systems.

CEO Kim Joo-hee stated, “By merging AI and microfluidic technology, we aim to revolutionize the LNP manufacturing process. This will not only accelerate development of mRNA-based obesity treatments but also enhance our global competitiveness in pandemic-response vaccines and other therapeutic fields.”

Recently, Inventage Lab revealed that its long-acting obesity injection reduced body weight by around 10% within 7 days under high-fat dietary conditions in preclinical tests, also showing significant improvements in liver fat accumulation.

Biosolution Rallies on Animal Testing Alternatives Policy Momentum

Biosolution’s share price also jumped after reports it would supply the government with its internationally certified 3D human tissue models, which serve as alternatives to animal testing in drug development. The company closed 5.45% higher at 34,800 KRW up 1,800 from the previous session.

Lee Jeong-sun, CEO of Biosolution.

On May 20, Biosolution presented its latest results in skin corrosion and inhalation toxicity testing using 3D tissue models at the “Industry-Academia-Government Workshop on Alternative Testing Methods,” hosted by the Ministry of Environment, Korea Environment Corporation, and the Korea CRO Association. Among participating organizations such as Seoul National University, the National Toxicology Center, and the Korea Conformity Laboratories, Biosolution was the only private company invited to present its research achievements.

The Ministry of Environment had previously announced its 2030 vision: “Achieving Chemical Safety with Animal Welfare,” which targets replacing over 60% of chemical hazard data with alternative methods and establishing global-level infrastructure by 2030. In line with this, construction is underway on a national animal testing alternatives center at the Korea Environment Corporation headquarters in Incheon, scheduled for completion in October 2025.

Once operational, the center will use Biosolution’s skin and cornea models for GLP-designated testing of skin corrosion (Item 20), skin irritation (Item 27), and eye irritation (Item 64), as specified under Korean regulations. Biosolution is currently the only domestic company with OECD Test Guideline (TG) and ISO-certified human tissue models.

Biosolution CEO Lee Jeong-sun stated, “We are the only company in Korea able to provide globally certified 3D tissue models that meet international standards. We are fully preparing to stably supply our models to the new government testing center.”