[Market Focus] ABL Bio Hits Record High for Second Day on 3.8 Trillion Won Technology Export Deal

ABL Bio is showing strong gains in early trading.

As of 10:09 a.m. on November 13, ABL Bio was trading at 163,500 won, up 29.04% (36,800 won) from the previous day. During the session, the stock climbed as high as 163,900 won, setting a new 52-week high.

Investor sentiment has been fueled for the second consecutive day by news that the company signed a technology transfer agreement worth nearly 3.8 trillion won with global pharmaceutical giant Eli Lilly. The two companies plan to develop multiple therapeutics based on various modalities (drug delivery methods) using the Grabody platform.

Under the terms of the agreement, ABL Bio is expected to receive an upfront payment of 40 million dollars (approximately 58.5 billion won) within 10 business days after completing administrative procedures such as the U.S. Hart-Scott-Rodino Antitrust Improvements Act (HSR Act). In addition to the upfront payment, ABL Bio is eligible to receive up to 2.562 billion dollars (approximately 3.7487 trillion won) in development, approval, and commercialization milestones, as well as tiered royalties based on net product sales.

Heo Hyemin, a researcher at Kiwoom Securities, raised the target price from 100,000 won to 180,000 won, stating that the ABL Bio platform is expected to play a key role in Eli Lilly's brain disease development strategy.