Korea's first bio venture corporations, Bioneer(064550), hit the upper price limit on KOSDAQ on the 19th. It rose more than 3% on the 20th and closed at 9,500 won. The stock climbed after news that a hair loss study using the company's technology was published in an international journal. The company has had ups and downs, including litigation over its hair loss products. Investors are watching whether Bioneer can rebound after its setbacks.
◇ Hair loss study using RNA technology featured in U.S. journal
Bioneer said on the 17th that a hair loss study applying its small interfering RNA (siRNA) technology was published in the Journal of the American Academy of Dermatology (JAAD). Small interfering RNA is a technology that blocks gene functions affecting hair loss. It works by inhibiting the production of specific proteins to interfere with gene expression.
Bioneer applied this to hair loss research. Researchers applied a substance using Bioneer's technology to the scalps of 72 patients with androgenetic alopecia. The substance aims to inhibit the DDK-1 protein, which is involved in hair follicle growth and thins hair. The company said hair shaft thickness improved after 12 applications over 24 weeks in low-dose, high-dose, and placebo (dummy drug) groups. It noted that patients with high stress hormone levels also saw benefits.
The company already had a hair loss-related cosmetic, Cosmerna. It likewise applied small interfering RNA technology. Bioneer is reviewing follow-up products to Cosmerna based on this study.
A Bioneer official said, "It has not yet been decided whether to develop it as a hair loss-related cosmetic or a treatment." However, the study has limitations because the number of participants was small and the duration was short.
◇ "Recognize it as a functional cosmetic"... loses legal battle
Bioneer was founded in 1992 by Chair Park Han-oh, who graduated from the Department of Chemistry at Seoul National University and earned a master's and doctorate in chemistry from the Korea Advanced Institute of Science and Technology (KAIST). It is the first research institute corporations of the Korea Research Institute of Bioscience and Biotechnology (KRIBB). It succeeded in DNA synthesis for the first time in Korea and released diagnostic kits during COVID-19.
Bioneer later entered the cosmetics market with Cosmerna. In 2021, Bioneer applied to the Ministery of Food and Drug Safety for recognition as a functional cosmetic, but the application was rejected. The Ministery of Food and Drug Safety was reportedly concerned about the possibility of systemic side effects.
In March of the following year, Bioneer filed a lawsuit with the Seoul Administrative Court to overturn the rejection by the National Institute of Food and Drug Safety Evaluation (NIFDS) under the Ministery of Food and Drug Safety, but lost in Jan. 2024. The ruling was finalized as Bioneer did not appeal.
Cosmerna was released in Korea as a general cosmetic, not a functional cosmetic. Accordingly, it cannot be advertised with phrases implying hair loss treatment or prevention.
In the first half of this year, Bioneer posted 178 billion won in consolidation sales and 650 million won in operating profit. Sales rose 10% from a year earlier, while operating profit fell 93%. A Bioneer official said, "Operating profit declined in the first half as we increased investment in research and development (R&D)."