HLB will be the newest member of the KRX300 Healthcare Index on the Korea Exchange (KRX) on June 9.

The anticancer drug developer said Wednesday that it would be included in the KRX300 Healthcare Index next Friday when the KRX regularly changes its index.

HLB was not included in the Healthcare Index because its main business was registered as shipbuilding. However, the company recently spun off its shipbuilding division into HLB ENG and registered itself as a biopharma company. Its market capitalization was 4.56 trillion won ($3.45 billion) on Tuesday.

“HLB, since it set about to develop rivoceranib by investing in LSKB (now Elevar Therapeutics) in the U.S. in 2008, has now attained two long-cherished goals after 15 years,” the company said. “This year, we submitted a New Drug Application (NDA) to the U.S. Food and Drug Administration to get approval for our rivoceranib+camrelizumab combo therapy as a first-line treatment for liver cancer. And we will also be included in the Health Care Index following a sector switch.”

Following its inclusion in the Morgan Stanley Capital International (MSCI) Korea Index and the KRX300 Healthcare Index, the company expects its stock price to rise thanks to the influx of healthcare funds. It explained that the inclusion in domestic and international healthcare indices is expected to lead to a steady influx of passive funds tracking these indices.

“HLB, which recently completed a new drug application for a first-line treatment for liver cancer, has been a standout performer by being added to the KRX300 healthcare index in June,” said Hur Hye-min, a researcher at Kiwoom Securities. “As the global interest rate hike cycle ends, HLB's success in developing and commercializing new drugs will not only increase the company's value but also revitalize the domestic biopharma industry."

After submitting the U.S. NDA, Elevar and HLB Life Sciences are preparing to file NDAs in Europe and Korea, too. They plan to submit the applications this year, according to each country's license application form. In addition to liver cancer, they are exploring additional indications for clinical trials.