[Click eStock] "Kangstem Biotech, Expectations Rise as Osteoarthritis Treatment Enters Full-Scale Clinical Trials"

On July 17, independent research firm ValueFinder analyzed that expectations for Kangstem Biotech are rising as the company officially begins clinical trials for its osteoarthritis treatment.

Lee Choongheon, a researcher at ValueFinder, stated, "The osteoarthritis treatment OSCA, which demonstrated overwhelming efficacy in Phase 1 clinical trials, entered Phase 2a this past March, and as of last month, 25% of patient enrollment had been completed." He added, "Based on the results of Phase 2a, the company is aiming for an overseas license-out in the second half of 2026."

A competitor currently conducting Phase 3 clinical trials is targeting annual sales of approximately 1 trillion KRW after securing marketing approval. As a result, expectations for Kangstem Biotech's clinical trials are also rising.

Additionally, Lee noted, "Kangstem Biotech's organoid platform is likely to attract attention as global companies in the United States and Europe increasingly demand alternatives to animal testing, due to ethical concerns and legal regulations surrounding animal experiments." He continued, "In September of last year, the company was selected for a national project led by the Ministry of Trade, Industry and Energy, and is currently in discussions with major global pharmaceutical companies, including a global company referred to as 'J', regarding commercialization."

He further commented, "Kangstem Biotech plans to raise approximately 39.6 billion KRW through this rights offering. The largest shareholder, Sejong, not only announced 100% participation in the rights offering but also disclosed the on-market purchase of warrants worth 4.6 billion KRW." He added, "Upon completion of the rights offering, the largest shareholder's stake is expected to increase to about 18-19%. This is a positive sign, as it contrasts with the typical decrease in the largest shareholder's stake during a rights offering."