1st place in the incidence of colorectal cancer among young people in Korea… Among biotech companies, ‘cancer-related stocks’ are on the rise

Colorectal cancer diagnosis company stock price rises 82.7% in one week
Korea under 50 years old ranks first in colorectal cancer incidence rate

Last week, the company that ranked No. 1 in stock price increase in the KOSDAQ market was not a secondary battery, semiconductor, or superconductor related stock. Genomic Tree, a developer of early colorectal cancer detection technology, rose more than 80% in a week. During this period, it ranked first among KOSDAQ listed companies in terms of stock price increase. While a warm wind is blowing in the bio industry, which has been neglected in the stock market for a while, cancer-related stocks are on the rise. As research results show that the incidence of ‘young colon cancer’ in adults under the age of 50 in Korea is higher than in other countries, the focus is on cancer-related stocks.

According to the Korea Exchange on the 13th, Genomic Tree was traded at 26,500 won on the 11th, up 19.10% from the previous day, breaking a 52-week reported price. During the past week (August 3-11), the Genomic Tree increase rate reached 82.7%. Genomictree is a company that developed ‘Earlytec C’, an early detection product for colorectal cancer. In April, it was selected as a subject for postponement of evaluation of new medical technology by the Korea Health and Medical Research Institute ( NECA ). If a new medical technology evaluation is postponed, medical technology can be used in the medical field during the grace period prior to enrollment in health insurance. As a result, medical staff in domestic hospitals can use ‘Earlytek C’ .

As Korea ranked first among the countries surveyed for the incidence of ‘young colorectal cancer’, the stock prices of companies tied to cancer-themed stocks soared. Investor interest in the bio sector has recently increased, especially cancer-related stocks. A research team led by a professor of gastroenterology at Seoul National University Bundang Hospital announced the results of a survey of 5,666,576 adults aged 20 to 49 who had undergone health checkups for 10 years on the 10th. According to the report, the incidence of colorectal cancer in adults under the age of 50 in Korea was 12.9 per 100,000 population, ranking first among 42 countries surveyed.

On the 11th, Mujin Medi, which develops a colorectal cancer treatment, also closed at 3,245 won, up 9.08% in one day. The stock price of Mujin Medi has risen by 33.53% over the past 7 days. Cellid, which develops an anti-cancer immunotherapy vaccine, fell 2.52% from the previous day to finish at 6,960 won. On this day, the share price of Sellid fell, but the rate of increase in the share price over the past week is about 15.15%.

The recent news that a Korean company is스포츠토토 participating in the cancer end project ‘Cancer Moonshot’ promoted by the US government has also blown a warm air into cancer-related stocks. ‘Cancer Moonshot’ is a project in which the US government ends large-scale funding to biotech companies to end cancer. The list of founding members of ‘Cancer Moonshot’ included Lunit and Prestige Biopharma.

Choi Jae-ho, a researcher at Hana Investment & Securities, said, “As the US announced the Cancer Moonshot Project, stock prices related to cancer prevention, early cancer screening, and treatment development are benefiting greatly.” However, if domestic companies enter the US, sales will increase significantly,” he explained.

In the meantime, as supply and demand have been focused on secondary batteries and semiconductors, bio stocks have been neglected. However, recently, as the supply and demand of secondary batteries have declined, favorable news for colorectal cancer has been overlapping, and bio stocks, including cancer-related stocks, are on the rise. In the KOSPI market, pharmaceutical companies Aprogen and JW Pharmaceutical rose 59.09% and 21.04%, respectively, within a week, recording high growth rates. Celltrion, SK Biopharm, and Samsung Biologics, which are classified as large-cap bio stocks, also rose 4.66%, 5.93%, and 1.14% over the same period.

Heo Hye-min, a researcher at Kiwoom Securities, predicted, “The pharmaceutical and bio industries are waiting for good news. Investor sentiment will improve in earnest if technology transactions are activated and excellent data are released.”

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