Earnings Lift Osteonic; CHA Vaccine Up 13%

[Kim Jinsoo, Edaily Reporter] On May 15, Osteonic drew market attention in the pharmaceutical and biotech industry by announcing remarkable earnings. Meanwhile, CHA Vaccine Institute saw its stock price rise on expectations for future growth following its acquisition by Ssolux. ToolGen, on the other hand, plummeted to the daily lower limit after announcing a 70 billion won paid-in capital increase following the close of the regular session.Osteonic's earnings growth leads to 5% riseAccording to KG Zeroin's MP Doctor (formerly Market Point), Osteonic shares surged more than 10% during intraday trading to reach 6,350 won. However, the gains narrowed, and the stock closed at 6,030 won, up 5.24%.The stock's upward momentum is attributed to significant growth in sales and profitability, indicating that its business initiatives are now yielding tangible financial results.On May 14, Osteonic disclosed its consolidated first-quarter earnings, reporting 12.9 billion won in sales, 2.3 billion won in operating profit and 2.7 billion won in net profit. Sales increased 35.4% year-over-year, while operating profit and net profit jumped 55.7% and 248.4%, respectively.The growth was largely driven by the sports medicine division, which posted 5.6 billion won in sales in the first quarter, more than doubling from the same period last year. Specifically, domestic sales grew by 18%, while exports skyrocketed by 729%.In 2020, Osteonic signed an exclusive global supply agreement for its sports medicine products with Zimmer Biomet, the world's second-largest orthopedic medical device company. Full-scale supply to the U.S. market commenced in May last year.An Osteonic official stated that the expansion of U.S. exports drove the earnings growth. "It is particularly meaningful that we achieved sales and operating profit comparable to the fourth quarter, which typically records the highest annual performance, despite the first quarter being a traditional off-season," the official said. CHA Vaccine Institute's stock Trend. (KG Zeroin's MP Doctor)CHA Vaccine Institute up 13% on future growth expectationsCHA Vaccine Institute's stock price soared up to 25.34% to 4,650 won during intraday trading compared to the previous day's close. It later pared some gains to close at 4,195 won, up 13.07%. The surge is largely linked to Ssolux, which recently acquired the institute's management rights.In March, the market paid close attention when CHA Biotech transferred CHA Vaccine Institute's management rights to Ssolux, a lighting specialized company. Beyond a simple equity acquisition, Ssolux is executing a strategy to strengthen its existing lighting business and secure a new growth engine by leveraging synergies between CHA Vaccine Institute and AriBio. Notably, CHA Vaccine Institute announced a plan to issue convertible bonds (CB) worth approximately 4 billion won on the same day. While CB issuance is generally considered a negative factor due to concerns over equity dilution, the market viewed the move positively. For the newly acquired institute, the fundraising was interpreted as securing capital for future growth to fund clinical trials for its new drug pipeline and build synergy with AriBio.ToolGen hits daily limit down on Nextrade following massive capital increaseToolGen shares plunged 22.97% to 96,600 won during the regular session and further plummeted 29.97% in the ensuing Nextrade (NXT) after hours market. This steep drop is attributed to the company's disclosure of a 70 billion won paid-in capital increase after the regular market closed.ToolGen disclosed on May 15 that it decided to carry out a paid-in capital increase of 70.08 billion won. Through this offering, 8,997,629 common shares will be issued at an expected price of 90,200 won per share. The payment date is set for Aug. 11 and the new shares are scheduled to be listed on Aug. 24.The capital increase will be conducted through a shareholder allocation followed by a public offering of forfeited