Shares of Syntekabio soared nearly 20 percent on Thursday, riding a wave of investor enthusiasm after Recursion Pharmaceuticals, a U.S.-based AI drug discovery firm, unveiled promising phase 2 clinical trial data for its AI-developed drug, REC-994.

The announcement, made at the International Stroke Conference, sent ripples through the biotech sector, reigniting optimism about AI’s potential in drug development.

Syntekabio’s stock closed at 8,600 won ($5.94) on Thursday, more than doubling from its 52-week low of 4,195 won in October. At 2:05 p.m. on Friday, the stock was trading at 8,500 won.

Other Korean AI-driven biotech firms, including Oncocross, which jumped more than 25 percent, also saw gains, though the company was not available for comment.

“Until now, no AI-discovered drug has received full approval,” said a Syntekabio official. “Some have advanced through clinical trials, but this is the first time we’re seeing real momentum in late-stage development. The market is responding.”

Recursion’s SYCAMORE trial results showed that REC-994, developed for cerebral cavernous malformation (CCM), demonstrated superior efficacy compared to existing treatments. After 12 months, 50 percent of patients saw a reduction in mean lesion volume, alongside improved functional outcomes. 

“While Recursion and Syntekabio are not directly linked, investors saw Syntekabio as one of the more comparable AI-driven drug discovery firms in Korea,” the Syntekabio official said.

Following Recursion’s announcement, AI-driven drug discovery stocks climbed across U.S. markets. Schrödinger, AbCellera, and Absci all posted gains as investors bet on AI’s role in reshaping pharmaceutical development.

Syntekabio, which specializes in early-stage hit compound identification, is looking to challenge global players in the AI-driven drug discovery race. The company’s DeepMatcher platform, a cloud-based AI system, is designed for synthetic drug development, neoantigen prediction, and antibody-based drug discovery.

“We believe the early-stage market holds greater potential,” the official said. “There are competitors, but no one has established dominance yet.” Unlike Schrödinger, which focuses on lead optimization, Syntekabio is targeting the broader, highly competitive early-stage discovery market.

The U.S. Stargate Project, announced earlier this year, has added fuel to the AI biotech boom. The initiative earmarks $500 billion for AI-driven cancer detection, personalized vaccine development, and data center infrastructure. “While the funds may not directly flow to us, the expansion of AI infrastructure benefits the entire industry,” the Syntekabio official said.

The company is investing in AI-driven supercomputing, with its ABS (AI Bio Supercom) center, positioning itself as Korea’s only drug discovery firm with proprietary supercomputing capabilities.

The company is also moving toward a SaaS (Software as a Service) model, recently launching Language Model Virtual Screening (LM-VS)—a cloud-based screening tool that allows researchers to access AI-powered drug discovery tools remotely. 

This aligns with SaaS-based strategies of global competitors like Schrödinger, paving the way for Syntekabio’s international expansion, the official said.

Through its DeepMatcher Drug Candidate (DDC) initiative, the official added that Syntekabio is "actively negotiating" collaborations with domestic pharmaceutical firms and global big pharma.