Lemon Healthcare, D&D Pharmatech, and Pharma Research posted strong gains on July 7 amid high volatility in South Korea's pharmaceutical and biotech sector. Lemon Healthcare rebounded to the daily upper limit of 12,220 won after closing below its IPO price the previous day, driven by low-price buying interest. D&D Pharmatech rose 12.38% to 85,300 won on expectations for a licensing deal for its MASH treatment candidate DD01, while Pharma Research climbed 8.44% to 340,500 won following its acquisition of a U.S. cosmetics manufacturing facility. The sector showed overall strength despite a morning circuit breaker triggered on the KOSPI market.
Lemon Healthcare Rebounds to Upper Limit After Weak IPO Debut
Lemon Healthcare closed at 12,220 won on July 7, up 2,820 won and hitting the daily upper limit, according to KG Zeroin MP Doctor. The closing price represents a 22.2% gain from the IPO price of 10,000 won. Intraday volatility remained high, with the stock falling as low as 8,520 won (down 14.8% from the previous close) during the session.
On its July 6 IPO debut, Lemon Healthcare surged over 100% to 20,300 won shortly after market open but gave back all gains in the afternoon, closing at 9,400 won — 6% below the offering price. Market observers attribute the July 7 rebound to bargain-hunting following the previous day's sharp decline.
Lemon Healthcare operates a two-way medical data intermediary platform connecting hospitals, patients, insurers, and pharmaceutical companies in real time. The company's core technology, Lemon Digital Bridge (LDB), powers services including LDB-H (smart hospital service contracted with 38 of South Korea's 47 major general hospitals) and LDB-E (private health insurance claim service). The company plans to use IPO proceeds to build AI medical data distribution and trading infrastructure and upgrade existing services.
"We will further enhance our medical data intermediary platform competitiveness through the KOSDAQ listing and accelerate the construction of AI medical data distribution and trading infrastructure to establish ourselves as a company connecting the medical AI ecosystem," said Hong Byung-jin, CEO of Lemon Healthcare.
D&D Pharmatech Gains on MASH Treatment Licensing Expectations
D&D Pharmatech closed at 85,300 won, up 9,400 won or 12.38% from the previous session. The stock exhibited significant intraday volatility, reaching a high of 91,900 won and a low of 72,600 won.
A company representative stated there was no specific catalyst for the price movement, attributing the gain to market expectations for a future major licensing deal. Market participants anticipate a technology transfer agreement for the company's MASH treatment candidate DD01 within this year.
DD01 is a dual agonist targeting both glucagon-like peptide-1 (GLP-1) and glucagon (GCG) receptors, designed to improve fatty liver through weight loss and blood sugar control. D&D Pharmatech presented Phase 2 clinical trial results at the European Association for the Study of the Liver (EASL) conference in late May, demonstrating statistical significance in key indicators. The company expects to receive the Clinical Study Report (CSR) for DD01 in the third quarter.
Heo Hye-min, an analyst at Kiwoom Securities, wrote in a report last month that DD01 "is the only late-stage asset that has succeeded in Phase 2 and is available for licensing out to big pharma in the current global MASH market, which gives it an advantageous position in negotiations." Heo compared DD01 favorably to Boston Pharmaceuticals' MASH treatment efimosfermin, which was licensed to GSK for a total of $2 billion after completing Phase 2 trials, noting that DD01 "holds equal or superior advantages in histological indicators such as liver fat reduction, MASH resolution, and fibrosis improvement."
A company representative stated, "Our primary goal is to find a partner that can develop and commercialize globally in the fastest and most efficient manner. The understanding among companies we are currently in discussions with has increased, and we are proceeding with comprehensive consideration of the partner most optimized for product development and the most favorable terms for the company."
Pharma Research Rises Following U.S. Facility Acquisition
Pharma Research closed at 340,500 won, up 26,500 won or 8.44%. Market observers view the gain as reflecting expectations for improved earnings following recent positive developments.
A Pharma Research representative stated, "It appears to be the result of various complex factors such as recent market conditions and investor sentiment, but we cannot confirm any specific event."
Analysts maintain a positive outlook on Pharma Research's earnings momentum. The company's first-quarter domestic medical device sales reached 58.4 billion won, declining only 2.2% quarter-on-quarter despite reduced foreign visitor consumption in January and February, supported by increased domestic demand and expansion into new medical specialties.
Kang Eun-ji, an analyst at Korea Investment & Securities, projected that "Pharma Research's second-quarter domestic medical device sales will increase by more than double digits quarter-on-quarter due to solid domestic demand and rebounding foreign demand." The cosmetics business, which showed solid growth in both domestic and international channels in the first quarter, is expected to continue strong performance through TikTok channel expansion in Southeast Asia starting in the second quarter and entry into U.S. offline channels.
On the 30th of last month, Pharma Research signed an acquisition agreement for CG USA, a California-based cosmetics OEM/ODM company, securing a local production base in the North American market. The move is designed to stably meet growing demand for Rejuran Cosmetic centered on Sephora and Amazon, with plans to enter the Canadian market in the second half of the year, accelerating North American market expansion.
"The acquisition of CG USA is a strategic decision to strengthen supply stability and business expansion infrastructure in the North American market," said Son Ji-hoon, CEO of Pharma Research. "We plan to continuously enhance our global derma cosmetic business competitiveness based on local production capabilities and quality infrastructure."
FAQ
What happened to Lemon Healthcare's stock price on July 7?
Lemon Healthcare closed at the daily upper limit of 12,220 won on July 7, rebounding 29.98% from its July 6 IPO closing price of 9,400 won. The recovery followed a weak debut in which the stock closed 6% below its 10,000 won offering price despite an initial surge to 20,300 won.
Why did D&D Pharmatech's stock rise on July 7?
D&D Pharmatech gained 12.38% to 85,300 won on July 7. A company representative attributed the movement to market expectations for a licensing deal for the company's MASH treatment candidate DD01, which presented positive Phase 2 results at the European Association for the Study of the Liver conference in late May. The company expects to receive the Clinical Study Report in the third quarter.
What recent business development drove Pharma Research's stock gain?
Pharma Research rose 8.44% to 340,500 won on July 7. On the 30th of last month, the company signed an acquisition agreement for CG USA, a California-based cosmetics OEM/ODM facility, to secure a North American production base for its Rejuran Cosmetic brand and support expansion into U.S. offline channels and the Canadian market.
