Pharmaceutical and biotech stocks, which had struggled to escape a prolonged slump, are attempting a rebound on the back of technology licensing achievements and positive obesity drug trial news. With major events such as U.S. Food and Drug Administration (FDA) approval reviews and large-scale technology exports scheduled for the second half, expectations are growing for a recovery in investor sentiment across the biotech sector.
According to the industry Tuesday, Alteogen (196170.KQ) recently reclaimed its position as the top stock by market capitalization on the KOSDAQ. Its platform "ALT-B4," which converts intravenous (IV) drugs into subcutaneous (SC) formulations, received a decision to register a European substance patent. The platform also won a series of favorable rulings in U.S. patent disputes, which is interpreted as having improved investor sentiment.
Biotech stocks had continued a sluggish trend this year as capital flowed into semiconductor and artificial intelligence (AI) stocks. But the mood has changed this month. Daewon Pharmaceutical (003220.KS) also posted three consecutive trading days of gains, buoyed by preclinical results for its obesity treatment unveiled at the American Diabetes Association meeting (ADA 2026). This candidate, a quadruple agonist that simultaneously targets GLP-1, GIP, glucagon and gastrin, drew market attention after reducing body weight by up to more than 50% within 22 days of administration in obese mouse models.
LigaChem Bio (141080.KQ) also extended its gains for a second consecutive trading day. Expectations for technology exports are growing after the American Society of Clinical Oncology meeting (ASCO 2026) held earlier this month confirmed fierce competition among global pharmaceutical companies to secure antibody-drug conjugates (ADCs). Having signed technology export deals in the fourth quarter every year over the past five years except for last year, expectations are also rising for a new contract based on its ADC platform "ConjuALL."
A series of large-scale technology exports over the past month or so is leading the recovery in investor sentiment across the biotech sector. On the 1st of this month, Hanmi Pharmaceutical licensed its obesity and metabolic disease treatment candidate "sonepegglutide" to Eli Lilly in a deal worth approximately 1.9 trillion won. On the same day, Oscotec also licensed its autoimmune disease treatment candidate "cevidoplenib" to U.S.-based Agios Pharmaceuticals in a deal worth approximately 1 trillion won.
An increase in equity investments and mergers and acquisitions (M&A) with big pharma is also a notable change in the first half of this year. Eli Lilly agreed last month to acquire Curevo, a subsidiary of GC Biopharma, for up to 459.9 billion won. Global beauty company L'Oréal participated as a strategic investor in OliX, diversifying the channels of capital inflow surrounding domestic biotech firms.
Heo Hye-min, an analyst at Kiwoom Securities, said, "If companies targeting technology exports in the second half deliver results, there is a possibility of approaching or exceeding last year's level, which marked a record high." She added, "While platform technology exports led the way last year, candidate technology exports are also increasing this year."
The market is focusing on global academic conferences and major clinical events that will determine technology export performance in the second half. As domestic companies are set to engage in partnering discussions with global pharmaceutical companies at BIO USA, held this month in San Diego, expectations are emerging that additional technology exports and investment gains may follow.
Jeong Yu-kyung, an analyst at Shinyoung Securities, forecast, "Technology transactions have resumed since May, stimulating investor sentiment that had cooled," adding, "As technology transactions by global pharmaceutical companies are usually concentrated in the second half, expectations for additional technology exports could grow from the third quarter onward."
Major events also await in the second half. HLB faces a decision on the 23rd of next month on FDA approval of its combination therapy of rivoceranib and camrelizumab for liver cancer, and an FDA review result for its bile duct cancer treatment lirafugratinib is scheduled for September. Whether major biotech firms such as LigaChem Bio and ABL Bio (298380.KQ) secure additional technology exports is also cited as a key point to watch.
