[Featured Stock] NatureCell, 16 Years of Research Yield Expected JointStem Product Approval... Process of Regaining Trust

[Asia Economy Reporter Hyungsoo Park] Naturecell is rebounding again after just one day. The stock price continues to rise following the success of the domestic Phase 3 clinical trial of the stem cell therapy Jointstem.

As of 10:21 AM on the 24th, Naturecell is trading at 26,750 KRW, up 11.92% from the previous day. It is rebounding after a 13% drop the day before.

The Korea Exchange KOSDAQ Market Headquarters requested a disclosure response asking for the reason behind the sharp rise in stock price, but Naturecell replied that there is no material information subject to important disclosure related to the stock price fluctuation.

Earlier, Albio, an affiliate of Naturecell, announced on the 17th of last month that the domestic Phase 3 clinical trial of the knee osteoarthritis treatment drug ‘Jointstem’ was successful. According to the clinical study report (CSR) from the clinical trial contract organization 'LSK Global PS,' statistically significant pain reduction and joint function improvement effects were confirmed. Jointstem is evaluated as a groundbreaking injection drug that can treat osteoarthritis with a single administration instead of existing similar drugs or surgical treatments.

Albio has been developing Jointstem since 2005 and has invested thousands of billions of KRW over 16 years. Albio is a company that changed its name from R&L Bio, which failed to receive an audit opinion for the 2012 fiscal year and was delisted from the KOSDAQ market in 2013. Dr. Rajangchan continued the development of Jointstem even after Albio’s delisting and completed the domestic Phase 3 clinical trial after numerous trials and tribulations.

Rajangchan, chairman of Naturecell and the chief developer of Jointstem, said, "We are also well preparing the quality and GMP parts, which are other requirements for product approval," adding, "We plan to apply for new drug approval within a few months."

Jointstem, developed by Albio, is an osteoarthritis treatment using adult stem cells. Since adult stem cells are harvested, isolated, and cultured from the patient's adipose tissue, immune rejection does not occur. Jointstem is injected directly into the patient's knee joint cavity with a single injection without surgery, resulting in fewer side effects and shorter recovery time compared to existing surgeries. It is expected to increase satisfaction in terms of ease of use.

According to the Health Insurance Review & Assessment Service, the number of osteoarthritis patients in Korea was approximately 3.68 million in 2016, with medical expenses reaching 369.2 billion KRW. The number of patients and medical expenses have been steadily increasing. From 2012 to 2016, the number of osteoarthritis patients increased by an average of 3% annually, and drug costs also rose by an average of 4.8% annually. The global osteoarthritis treatment market is expected to grow at an average annual rate of 8.1%, from 680 million USD in 2019 to 1.01 billion USD in 2024.

If the Korea Food and Drug Administration approves the product license for Jointstem, it is expected to help improve the performance of Albio and Naturecell.

This content was produced with the assistance of AI translation services.