The surging of Tego Science shares on Kosdaq on Thursday drew attention, primarily because most of pharmaceutical and biopharmaceutical stocks fell.
The manufacturer of wound-healing skin cell treatments saw its stocks jumping 25 percent to 96,600 won ($88.8) per share on Thursday, a record high since the initial public offering on Nov. 6, 2014.
Despite institutional investors’ net-selling worth 21.38 billion won, individual and foreign investors net-purchased a more substantial amount to raise the stock value. Foreigners, in particular, net-bought 10.32 billion won worth of Tego Science stocks.
Tego Science’s two flagship products are Holoderm and Kaloderm, which contribute to more than 90 percent of the company’s total revenue. Holoderm is a sheet product for third-degree burn patients using the patient’s epidermal cells to help regenerate the skin on the wound. Kaloderm is for second-degree burn wounds.
With stable sales growth of Kaloderm, the company’s third-quarter revenue rose to 2.29 billion won, up 4.1 percent from the previous quarter, according to the company. Operating profit jumped 38.5 percent quarter-to-quarter to 690 million won.
Tego Science is also seeking to win approval for TPX-105, a cell therapy for wrinkle reduction. A grant for the product will help the company enter the facial cosmetics market and diversify revenue sources, the company said.
The company is also pinning its hope on Kaloderm, which can also treat diabetic foot ulceration.
Kaloderm showed 91 percent cure rate in the post-market surveillance (PMS) between June 2010 and June 2014. However, it is an expensive cell therapy.
“Kaloderm for burn treatment can be covered by the national health insurance and industrial accident compensation insurance. But for diabetic foot ulceration, it doesn’t have insurance benefits,” Tego Science said. “The cure rate shown in clinical trials already proved that Kaloderm is an excellent therapy for diabetic foot ulceration.”
Tego Science’s cell therapies Kaloderm and Holoderm posted accumulated revenue of 6.16 billion won in the three quarters of this year.
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