HLB Soars on Foreign Funding…SK Bioscience·Protea Jump on Earnings[K-bio Pulse]

[Seok Ji-hoen, edaily reporter] South Korean biotech stocks rallied on Tuesday led by HLB’s sharp gains following news of a major foreign investment. SK Bioscience and Protea also jumped on the back of strong third-quarter results.

HLB stock performance. (Source: Naver Finance)

Betting on FDA Approval

According to KG Zeroin MP Doctor (formerly Market Point) HLB closed up 13.68% at 53,600 won after securing about 206.9 billion won in strategic investment from U.K.based asset manager LMR Partners.

Affiliate stocks followed suit: HLB Life Science (+19.10%), HLB Pharmaceutical (+16.34%), HLB Therapeutics (+13.88%), HLB Panagene (+6.21%), and HLB Innovation (+5.57%) all gained, while HLB Biostep (278650) hit the upper limit (+29.98%), fueling investor optimism.

On Monday HLB announced plans to issue $140 million (about 199.8 billion won) in unseparated bonds with warrants (BW) to LMR Partners and $5 million (about 7.1 billion won) in exchangeable bonds (EB) through its affiliate HLB Life Science. Global investment bank UBS acted as sole underwriter.

HLB said 85% of the proceeds will be allocated to U.S. subsidiary Elevar Therapeutics for cancer drug development and global commercialization.

Market analysts said the deal marks a rare case of foreign capital entering a Korean biotech firm without a management control purpose, the first such large-scale investment since Temasek’s 2010 stake in Celltrion.

An HLB official said, “This marks the first inflow of overseas capital in the group’s history and recognition from global investors for our innovative drug development potential. We’ll accelerate Elevar’s global approval and commercialization to enhance corporate value.”

HLB aims to resubmit its combination therapy of rivoceranib and camrelizumab for liver cancer to the U.S. Food and Drug Administration (FDA) by early next year while also pursuing approval for its cholangiocarcinoma treatment.

SK Bioscience stock performance. (Source: Naver Finance)

SK Bioscience Narrows Losses, but Analysts Cautious

SK Bioscience rose 18.31% to close at 60,100 won after reporting strong third-quarter results, with consolidated revenue of 150.7 billion won and an operating loss of 19.4 billion won, narrowing the deficit by more than half year on year.

SK Bioscience attributed the improvement to steady contributions from its German subsidiary IDT Biologika, acquired in October 2024, and growing vaccine sales. The company’s cumulative 2025 revenue reached 467.2 billion won, more than quadruple the same period last year.

IDT has expanded its customer base in Europe and North America, bolstering its global CDMO (contract development and manufacturing organization) competitiveness through production efficiency and cost optimization.

Still, brokerage firms remain cautious. DB Financial Investment and Korea Investment & Securities both maintained a “Hold” rating in their latest reports, citing a need for more consistent earnings performance.

DB analyst Myung sun Lee said “While pipeline progress such as global Phase 3 trials for the pneumococcal vaccine and clinical plans for the varicella two dose vaccine should gradually improve results, operating losses are likely to persist through 2027. We maintain a neutral stance.”

Protea stock performance. (Source: Naver Finance)

Protea Strengthens on Record Earnings and New Launch

Diagnostic device maker Protea jumped 13.95% to 4,820 won after posting solid third quarter earnings.

The company reported revenue of 4.03 billion won, up 36.9% year over year operating profit of 1.18 billion won up 117.6%, and net income of 1.29 billion won surging 267.6% from a year earlier.

Protea recently launched the world’s first saliva based noninvasive immune diagnostic device IMSAFE Saliva which measures immunoglobulin A (IgA) levels within 15 minutes using just a few drops of saliva. The device eliminates the need for blood draws and can be stored at room temperature, improving distribution efficiency.

The company has already signed distribution contracts in Canada and other major markets and continues to expand its portfolio from allergy and antibiotic resistance testing to immune management. Protea aims to reach 50 billion won in annual sales within three years and 100 billion won within five.

A company spokesperson said “We will grow into a global diagnostic device leader built on our three core pillars immunity allergy and antibiotic resistance while ensuring both technological competitiveness and profitability.”