[Asia Economy Reporter Koh Hyung-kwang] Bio company MedPacto recently surged in stock price, rising to 14th place in KOSDAQ market capitalization. The market cap, which was only 360 billion KRW at the time of listing at the end of last year, has exceeded 2 trillion KRW.
According to the Korea Exchange on the 26th, MedPacto closed at 100,900 KRW on the KOSDAQ market the previous day, up 14.6% from the previous trading day. This is the first time since its KOSDAQ listing in December last year that the stock price surpassed 100,000 KRW, marking a 2.8-fold increase compared to the closing price on the first day of listing (35,900 KRW). Considering the 1-for-1 stock dividend conducted in May, the increase rate exceeds 460%. The stock price has also sharply risen recently, surging 93.6% compared to early last month’s price of 52,100 KRW.
Based on the closing price the previous day, the market capitalization stood at 2.0517 trillion KRW, placing it 14th within KOSDAQ. Compared to the 128th place (market cap 362.4 billion KRW) on the day of listing, it has jumped 114 ranks in just over eight months. It has also surpassed companies such as Hugel (market cap 1.998 trillion KRW, 15th) and Medyion (1.8604 trillion KRW, 17th), aiming to enter the top 10 in market capitalization. Above MedPacto as of the previous day are Kolmar BNH (2.1241 trillion KRW, 13th), Studio Dragon (2.3095 trillion KRW, 12th), Pearl Abyss (2.4158 trillion KRW, 11th), and SK Materials (2.6126 trillion KRW, 10th).
MedPacto is an anticancer drug development company that was spun off in 2013 from Theragen Etex, a bio company and KOSDAQ-listed firm. Although it currently has no sales and continues to operate at a loss, it was listed on the KOSDAQ market on December 19 last year through a technology special listing. MedPacto is currently developing its core new drug, 'Bactosertib.' Bactosertib is a drug that improves the tumor microenvironment to enable immune cells to effectively attack cancer cells. In particular, Bactosertib has attracted global medical attention as it has been shown to enhance the therapeutic effects of world-renowned immune checkpoint inhibitors such as Keytruda and Imfinzi.
The recent sharp rise in stock price also reflects expectations for technology export of 'Bactosertib.' Foreign and institutional investors have driven the stock price up by purchasing MedPacto shares worth 29 billion KRW and 20.8 billion KRW respectively from early July until the previous day. Starting next month, clinical trial results will be announced sequentially, raising investor expectations. MedPacto will present results of combination therapy with paclitaxel for metastatic gastric adenocarcinoma patients at the European Society for Medical Oncology (ESMO) next month. In November, it will showcase combination data with Imfinzi at the Society for Immunotherapy of Cancer (SITC), and in June next year, combination data with Keytruda at the American Society of Clinical Oncology (ASCO).
However, it should be noted that it takes time to complete phase 3 clinical trials and successfully transfer the technology. There are hardly any securities research centers officially covering MedPacto. Although the stock price surged after a 1-for-1 stock dividend in May, there were also negative views about a deficit company conducting a stock dividend less than a year after listing. A financial investment industry official said, "MedPacto’s technology is highly evaluated, but it still has no sales and continues to operate at a loss," adding, "Investors should exercise caution."
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