Prominent in new drug development ‘Argenomics’ ‘Gene Edit’ ‘Ipsell’ Remote treatment ‘Doctor Now’ ‘GoodDoc’ AI surgery ‘Hutom’
Just a few years ago, the bio-healthcare industry was selected as a new growth engine to feed Korea. If only the modifier ‘bio’ was added, the corporate value jumped several times, and investors came with money. However, the market was frozen solid during the COVID-19 pandemic. With the exception of some fields such as diagnostic kits, the ‘money line’ has dried up in the bio industry. This is because IPOs, venture capital (VC) investments, and convertible bond (CB) issuance, which are key funding channels, have been delayed or canceled one after another.
Voronoi, which had high expectations for the ‘unicorn special listing No. 1’ in March, withdrew its listing due to poor demand forecasting, and Aribio, a dementia drug R&D company, a representative K-OTC, suffered a bitter taste of being eliminated from the technical evaluation. The stock price of Mezion’s Fontan surgery (heart malformation surgery) treatment plummeted as it failed to get approval from the US Food and Drug Administration (FDA).
This phenomenon is not unique to Korea. Volatility in the global bio/healthcare sector continues to expand after the pandemic. However, it is analyzed that this increase in volatility is not due to damage to the fundamentals and growth potential of the bio/healthcare industry. Due to the nature of a bio company, where the future value of pipelines accounts for most of the corporate value rather than immediate performance, investment sentiment has temporarily deteriorated due to delays in clinical trials due to COVID-19, interest rate hikes, and drop in pipeline value due to geopolitical risks. evaluation as a result.