The stock performance of bio and healthcare companies listed over the past year was driven more by revenue than by technology.
As overall investor funds flowed into artificial intelligence (AI) and semiconductors, shares of medical device firms such as those making wearables and robots rose, while companies that listed under the technology special listing system and rely on long-term clinical trials traded below their initial public offering (IPO) prices, creating extreme polarization.
According to an analysis by Seoul Economic Daily of the stock prices of 16 bio and healthcare companies listed on the stock market over the past year, conducted Monday, only five companies posted notable positive returns against their IPO prices. These firms either recorded solid revenue in line with leading market themes or secured major license-out (technology export) momentum. In contrast, 11 companies, including tech-listed firms whose technology was recognized but whose earnings visibility was low, failed to hold their IPO prices and could not avoid declines.
The companies that posted the highest gains were those aligned with the "AI, robot, and wearable" trends, where market liquidity was concentrated. CosmoRobotics, a wearable rehabilitation robot specialist, posted the best results, soaring 150.5% above its IPO price of 6,000 won to 15,030 won (based on the June 30 closing price). The result stemmed from actual revenue generated by supplying products to hospitals and industrial sites, combined with the aging-population beneficiary theme. Recens Medical, a cooling medical device firm, also rose 47.5% above its IPO price, leveraging its expandability into the cosmetic and ophthalmology markets.
In the new drug and platform sectors, only some companies in global trends such as antibody-drug conjugates (ADC), ribonucleic acid (RNA), and AI-based platforms rose selectively. AimedBio, which develops ADC anticancer drugs, surged 128.2% above its IPO price on clinical approval momentum and expectations for technology transfers, while Rznomics, an RNA therapeutics company reflecting expectations for a deal with big pharma, rose 82.2%.
In contrast, tech-listed firms that drew dazzling attention at the time of their listing have failed to clear the hurdle of "earnings verification." IMBiologics, which develops autoimmune antibody therapeutics, fell 14.6%, and Qanaph Therapeutics, an anticancer drug developer, declined 124.9%, with both stocks struggling. Quad Medicine, a microneedle platform company, fell 60.1% below its IPO price as the burden of lock-up (overhang) volume from pre-listing investors coincided with widening losses.
"Rather than a slump across the entire bio sector, this is a cold-headed shift of internal funds," an industry official said. "Investors now invest only in money-making sectors that are connected to the AI and robot themes currently leading the market, or that prove visible revenue and the potential to turn a profit."
