InBody Rallies on GLP-1 Buzz, Cellid Sinks[K-Bio Pulse]

[NA Eun-kyung, Edaily Reporter] Shares of South Korean biotech companies moved sharply in different directions on Monday as company-specific developments drove investor sentiment. InBody extended its rally and climbed to a fresh 52-week high on expectations that the expanding glucagon-like peptide-1 (GLP-1) obesity drug market will boost demand for body composition analysis. AriBioLab surged more than 11% after its largest shareholder, AriBio, completed participation in a rights offering. Cellid, meanwhile, fell to a new 52-week low as investors continued to react to the failure of its Phase 3 COVID-19 vaccine trial.

InBody shares have been hitting fresh 52-week highs in recent sessions. (Source=KG Zeroin MP Doctor)

◇InBody Extends Rally on Growing GLP-1 Opportunity

InBody closed 9.89% higher at 57,800 won after rising as high as 62,000 won during the session, marking another 52-week high.

The recent rally reflects growing expectations that the company will benefit from the rapid expansion of the GLP-1 obesity treatment market. In a recent report, Mirae Asset Securities projected that China's obesity drug market is entering a period of rapid growth, driving demand for body composition analysis.

The brokerage said body composition monitoring is becoming increasingly important after GLP-1 treatment because patients need to manage muscle loss as well as weight reduction. It expects a new market to emerge through China's direct-to-patient, or DTP, pharmacy network, estimating the opportunity at about 71.2 billion won ($51 million). It also said wider adoption could enhance InBody's brand value as a medical device maker.

The company is also accelerating efforts to capitalize on the global obesity treatment market. InBody is collaborating with global pharmaceutical companies in China to incorporate its body composition analyzers into obesity treatment programs and is expanding similar partnerships through its overseas subsidiaries, including in the United States.

"It is difficult to identify a single reason behind the recent share price increase, but we believe growing interest in body composition management alongside the expansion of the GLP-1 market has brought greater attention to InBody," a company official said. "We are pursuing various collaborations with global pharmaceutical companies in overseas markets, including China and the United States."



◇AriBioLab Jumps 11% After Rights Offering Completion

AriBioLab gained 11.36% to close at 2,940 won.

The rally followed the completion of a 3 billion won third-party share allotment to its largest shareholder, AriBio. The company disclosed earlier in the day that the capital increase had been fully subscribed.

The transaction further strengthens the ownership relationship between the two companies and has raised expectations for closer collaboration in research and development.

AriBio is developing treatments for Alzheimer's disease, while AriBioLab owns vaccine platform technology. The companies plan to expand cooperation by developing preventive Alzheimer's vaccines using AriBioLab's vaccine platform.

"The amount itself is not large, but this capital increase marks the beginning of full-scale cooperation through a stronger ownership relationship," an AriBioLab official said. "We plan to expand group-level synergies beyond therapeutics into preventive vaccines."



◇Cellid Slides to 52-Week Low After Phase 3 Vaccine Failure

Cellid plunged 27.90% to close at 1,406 won after falling as low as 1,369 won during the session, setting a new 52-week low.

The sharp decline extended losses after the company disclosed on June 26 that its global Phase 3 trial of COVID-19 vaccine candidate AdCLD-CoV19-1 OMI failed to demonstrate non-inferiority for the primary immunogenicity endpoint.

AdCLD-CoV19-1 OMI represented the final stage of Cellid's COVID-19 vaccine development program, which began in 2020. After initially developing a COVID-19 vaccine, the company advanced updated versions targeting the Delta and Omicron variants and entered a global Phase 3 trial with government support. The market had viewed the study as the final hurdle before commercialization of a domestically developed COVID-19 vaccine, but the failure to meet the primary endpoint means the company must revise its regulatory and clinical development strategy.

Despite the setback, Cellid said it will continue development. The company plans to hold a shareholder meeting on July 9 to present its follow-up clinical roadmap, regulatory timeline and financing plans.

"The safety data obtained from this Phase 3 trial, together with the clinical experience accumulated over the years, will serve as the foundation for completing additional studies to demonstrate immunogenicity and for moving through the Ministry of Food and Drug Safety's approval process as quickly as possible," CEO Kang Chang-yul said. "We also aim to deliver early results from our cancer vaccine partnerships, and I plan to purchase additional shares to help enhance our undervalued corporate value."