Cellumed Surges Limit Up...DXVX Rises 10% as Finances Improve [K-bio pulse]

[Kim Jinsoo, Edaily Reporter] On the 23rd, shares of Cellumed surged to the daily trading limit on expectations that fresh outside funding could help put its business back on track.

DXVX rose more than 10% after moving to shore up a weakened capital structure. MicroDigital also gained on optimism that it will expand supply items next year under a contract with Celltrion.

Cellumed stock trend. (KG Zeroin)

◇L&C Bio’s Cellumed bet Can it pull off a turnaround?



According to KG Zeroin’s MP Doctor (formerly MarketPoint), Cellumed shares headed straight to the daily limit at the open and closed at 1,123 won. The move was widely attributed to expectations of financial improvement and business normalization.

L&C Bio said its subsidiary L&C ES will become Cellumed’s largest shareholder by participating in Cellumed’s third party allotment capital increase. The offering will include participation by L&C ES, the Global Medical Research Center, and Now I.B. Capital. The issue price is 603 won, reflecting a 10% discount, and the total proceeds are 17 billion won.

After the capital increase is completed, Cellumed’s largest shareholder group will change from Inscobee and five related parties (15.6%) to L&C ES and two other parties (33.9%), the company said.

The deal is also expected to ease a key overhang: Cellumed’s financial risk. As of the third quarter, Cellumed reported 716 billion won in consolidated assets and 551 billion won in liabilities. Total equity stood at 165 billion won with a midyear capital impairment ratio exceeding 50%.

Its debt to equity ratio had climbed to 333.5%. Revenue through the third quarter totaled 111.9 billion won, but the company remained in the red with an operating loss of 4.5 billion won.

The new funding is expected to help address damages tied to ongoing U.S. litigation. Cellumed is facing a lawsuit in Florida’s Orange County Circuit Court over alleged violations related to the safety and management of human tissue. The claim amount is 148 million won, and a separate damages suit totals 300 million won.

L&C Bio said the capital increase should be sufficient to resolve amounts tied to the U.S. litigation and that it plans to focus on normalizing Cellumed’s operations after removing legal-dispute risk in the United States.

Meanwhile, shares of L&C Bio, parent of the incoming Cellumed controlling shareholder fell 5.22% to 63,500 won, reflecting investor concern that acquiring a financially distressed company could weigh on results.

An L&C Bio official said the market appears wary of the acquisition but added the company intends to prove the deal’s benefits through performance.



◇DXVX rises on move to exit full capital impairment



DXVX closed up 10.38% at 2,500 won. The gain followed news that the company’s largest shareholder, Lim Jong-yoon the eldest son of the Hanmi Pharmaceutical Group family and chairman of Cory Group will participate in a roughly 100 billion won third-party allotment capital increase aimed at improving the company’s financial position.

New shares will be issued at 2,027 won, a 20% premium to the reference price. The company said proceeds will be used for working capital and facility investment.

Under KOSDAQ rules, a capital impairment ratio above 50% can trigger designation as an administrative issue if it persists for two consecutive years, it can become grounds for delisting. Full capital impairment can prompt immediate delisting review.

DXVX reported total equity of minus 3.2 billion won as of the end of the third quarter, down 8.6 billion won from 5.4 billion won at the end of the first half, pushing it into full capital impairment. The company had already been designated an administrative issue in March after posting legal losses exceeding 50% of equity at least twice over the past three years.

As of the third quarter, DXVX held 6.9 billion won in cash and cash equivalents and 2.6 billion won in other current financial assets underscoring the need for improvement.

A DXVX official said the financing will ease market concerns about full capital impairment and support shareholder value on the back of a more stable balance sheet.



◇MicroDigital gains on expectations for broader Celltrion orders in 2026



MicroDigital closed up 6.10% at 10,780 won. Since the 22nd, the stock has risen 18.72%. The move was attributed to expectations of stronger results next year on the back of multiple contracts.

On the 19th MicroDigital said it signed a supply agreement with Celltrion to provide “The Bag” for use in production processes. The Bag is a single-use bag used for transport and storage of cell culture media aseptic sampling and cryogenic storage.

MicroDigital has supplied Celltrion with single use bags for research purposes since 2023 but the latest deal is seen as more significant because it covers products used in manufacturing processes, which could meaningfully increase volumes.

MicroDigital said it plans to accelerate expansion into large scale production and industrial supply channels. The company also said it will step up efforts to apply its single use cell culture system “Cellbic” to production processes.

A MicroDigital official said there have been no additional developments since last week’s Celltrion contract and that the company plans to supply Celltrion with a broader range of single-use bag specifications going forward.