BIO USA Optimism Lifts BL Pharmtech …D&D Pharmatech Falls on CB Conversion[K-Bio Pulse]

[Hong Ju-yeon, Edaily Reporter] South Korea’s pharmaceutical and biotech sector was driven by expectations surrounding BIO USA 2026, the world's largest global biotech partnering event, on July 23. BL Pharmtech surged on hopes for business development outcomes from the conference, while CurexoCell gained on expectations of a reassessment for national health insurance reimbursement of its CAR-T therapy. In contrast, D&D Pharmatech declined following the exercise of conversion rights on its convertible bonds (CBs).

BL Pharmtech Stock Chart (Source: KG Zeroin MP Doctor)

◇BL Pharmtech Soars 23.77% on BIO USA Partnering Expectations

According to KG Zeroin’s MP DOCTOR, shares of BL Pharmtech closed at 2,020 won, up 388 won (23.77%) from the previous session. The stock briefly hit its daily upper limit of 2,120 won during trading.

Investor sentiment was boosted by expectations for the company’s participation in BIO USA 2026, held in San Diego from June 22 to 25 (local time).

At the event, BL Pharmtech plans to conduct partnering meetings centered on its lead candidate ML301 with companies specializing in antibodies, antibody-drug conjugates (ADCs), and targeted protein degradation (TPD).

ML301 is a molecular glue-based anticancer candidate targeting difficult-to-treat solid tumors dependent on the alternative lengthening of telomeres (ALT) mechanism. The company said cell-based studies and animal model evaluations have demonstrated anticancer activity and tumor growth suppression potential. Unlike small-molecule inhibitors or proteolysis-targeting chimera (PROTAC) approaches, ML301 is expected to offer advantages such as oral administration and reduced resistance development.

“We have meetings scheduled with at least seven global companies at BIO USA, and additional requests continue to come in,” said Park Young-cheol, Chairman of BL Pharmtech. “Many companies are also interested in updates following our molecular glue technology being selected as a final winner in Amgen’s 2025 Golden Ticket program.”

Cruocell Stock Chart (Source: KG Zeroin MP Doctor)

◇Cruocell Gains 6.43% on Anticipated July Reimbursement Review

Cruocell closed at 30,600 won, up 1,850 won (6.43%) from the previous day. The stock surged as much as 19.24% intraday to 34,800 won.

The gain was attributed to expectations for a reimbursement reassessment of Rimkato, South Korea’s first chimeric antigen receptor T-cell (CAR-T) therapy.

Although Cruocell received marketing approval for Rimkato in April, reimbursement coverage was denied last month by the Health Insurance Review and Assessment Service (HIRA)’s Severe Disease Review Committee. At the time, HIRA requested publication of the clinical data in an internationally recognized peer-reviewed journal.

The company met that requirement on June 12, when Phase 1/2 clinical results for Rimkato were published in Blood, the journal of the American Society of Hematology (ASH). As a result, market observers believe the company can pursue a reimbursement reassessment in July and potentially launch the product in the second half of the year.

According to the Phase 2 CRC01 study results published in the paper, Rimkato achieved an objective response rate (ORR) of 75.3% and a complete remission (CR) rate of 67.1%, based on evaluations by an independent review committee (IRC). The incidence of Grade 3 or higher cytokine release syndrome (CRS) was 8.9%, while neurotoxicity (NE) occurred in 3.8% of patients.

Given that a single CAR-T treatment can cost several hundred million won, reimbursement coverage is a key determinant of market size. Cruocell is reportedly considering a pricing strategy more than 10% below that of competing therapies.

D&D Pharmatech Stock Chart (Source: KG Zeroin MP Doctor)

◇D&D Pharmatech Drops 10.6% Following CB Conversion Requests

D&D Pharmatech closed at 96,100 won, down 11,400 won (10.6%) from the previous session.

The decline appeared to reflect concerns over the exercise of conversion rights on approximately 29.9 billion won worth of convertible bonds. A total of 1,423,762 new shares, representing 3.21% of the company’s outstanding shares, will be issued at a conversion price of 21,017 won and listed on July 9. Market participants cited concerns over a potential near-term overhang from additional share supply.

However, the company has already exercised a call option on the remaining 4.4 billion won of CBs on July 15, substantially reducing the risk of further dilution.

Despite the stock weakness, the company reported positive pipeline developments. D&D Pharmatech announced that its U.S. subsidiary Neuraly has been invited to present Phase 2 results for lead asset Zabofegdutide (DD01) during the Shark Tank session at SOLAR Conference 2026, which will be held in Puerto Rico on June 27.

The session will feature key decision-makers from major pharmaceutical companies including Madrigal, GSK, and Boehringer Ingelheim as panelists.

“Through our participation in SOLAR 2026, we aim to showcase the clinical value and differentiated competitiveness of Zabofegdutide to the global market,” said Lee Seul-gi, Chief Executive Officer of D&D Pharmatech.