[Shin Min-joon, Edaily Reporter] South Korean pharmaceutical and biotechnology stock market saw notable gains on Wednesday, with BL Pharmtech, Celltrion, and Amicogen leading the charge. Celltrion’s stock surged as its autoimmune treatment, Remsima, surpassed 1.2 trillion won in annual sales, marking it as the country’s first blockbuster drug. Amicogen’s stock climbed on expectations of management stabilization following the dismissal of its founder, Shin Yong-chul, from the board.

BL Pharmtech Soars on Stock Split Effect

BL Pharmtech’s stock price skyrocketed by 29.95% to 1445 won, hitting the local daily limit-up early in the trading session. This sharp increase was attributed to the stock split effect from its recent bonus issue, in which two additional shares were allocated per common share.

BL Pharmtech stock info. on Feb 26. (MP Doctor)

A stock split, or ex-rights adjustment, occurs when a company issues additional shares, leading to a proportional reduction in share price. Investors often perceive the lower adjusted price as a buying opportunity, creating a temporary surge in demand. BL Pharmtech’s new shares, totaling 17.78 million, will be listed on March 20.

Beyond the stock split, BL Pharmtech also benefited from positive market sentiment surrounding its instant noodle brand, Mr. Min, launched in Europe through its subsidiary Anyone F&C. After securing distribution in France’s Carrefour in 2022, Mr. Min expanded to Morrisons in the U.K. this year. A BL Pharmtech representative noted that the brand’s success reflects the continued global demand for Korean food, following the popularity of Samyang’s Buldak Ramen. The company plans to further expand supply capabilities to boost revenue from its European operations.

BL Pharmtech is also making strides in the biotech sector, supplying in-vitro diagnostic reagents to major university hospitals, including Korea University Medical Center. Its subsidiary, BL Science, secured FDA approval in 2023 for Gynetest, a self-diagnostic kit for women’s health conditions. Gynetest, the world’s first pad-type diagnostic kit, allows users to detect HPV and sexually transmitted infections (STIs) through a specialized pantyliner-style pad. BL Science is preparing to enter the U.S. market and has already signed a $1 million supply deal with UAE-based Abda Portal.

Celltrion’s Remsima Achieves Blockbuster Status

Celltrion’s stock climbed 8.73% to 189,300 won on the back of strong sales performance for Remsima, which generated 1.268 trillion KRW in revenue last year. In South Korea, drugs with global sales exceeding 1 trillion KRW annually are classified as blockbusters, and Remsima is the first domestically developed drug to achieve this status.

Remsima is the world’s first antibody biosimilar, developed by Celltrion as a lower-cost alternative to Johnson & Johnson’s Remicade. After nearly a decade of development, Celltrion secured FDA approval in 2016 and successfully captured market dominance, surpassing Remicade’s market share within five years. This achievement granted Remsima the title of the first biosimilar to outperform its reference drug in market share.

The success of Remsima is attributed to its strong therapeutic efficacy and Celltrion’s global direct sales strategy, which allows the company to market its products without intermediaries. Celltrion remains the only South Korean pharmaceutical firm to operate a global direct sales network, optimizing sales approaches for regional markets.

Interest is also growing in Remsima SC, the world’s first subcutaneous formulation of infliximab, which Celltrion launched as Zymfentra in the U.S. market last year. The company successfully secured coverage agreements with the top three pharmacy benefit managers (PBMs), which control 80% of the U.S. insurance market, significantly expanding patient access. With aggressive TV and YouTube advertising campaigns initiated in September, Celltrion expects accelerated U.S. sales growth in 2024.

A Celltrion spokesperson emphasized that the company is not resting on Remsima’s success and is actively pushing for new biosimilar developments, including Remsima SC, antibody-drug conjugates (ADCs), and multi-specific antibodies. The company is committed to creating the next generation of blockbuster biologics.

Amicogen Sees Gains Amid Management Shake-Up

Amicogen’s stock rose 13.83% to 4,650 won following an extraordinary general meeting (EGM), where shareholders voted to remove founder and chairman Shin Yong-chul from the board.

Shin’s dismissal, approved with 53.3% of shareholder votes, marks a turning point for the company’s governance. The board also dismissed independent director Park Sung-kyu while appointing Soh Ji-sung (a shareholder representative) and Kim Joon-ho (Amicogen’s VP of business strategy) as new board members. Additionally, Han Chang-young, CEO of a non-profit organization, and Kim Soon-yong, a legal expert, were appointed as independent directors.

The move effectively ended Shin’s attempt to bring in Kwangmu as a strategic investor, a plan that had faced significant opposition from minority shareholders. Critics had accused Kwangmu of being a corporate raider, raising concerns over real estate project financing (PF) issues linked to its past ventures.

Shin is also facing legal trouble, as he was sued for fraud involving a 50 billion won loan allegedly secured using Amicogen shares as collateral under false pretenses.

With new leadership in place, CEO Pyo Cheol announced plans to improve Amicogen’s financial health by reducing debt while searching for a new strategic investor to replace Kwangmu. A company representative stated, “We are committed to finding an investor that aligns with Amicogen’s long-term vision, though no immediate decisions have been made.”