Moderna Lifts K-Bio, Will FDA Easing in the Second Half Keep the Rally Going?

Moderna's US stock soared 176% yesterday, a remarkable rally. This Moderna-driven momentum also had a positive effect on domestic K-bio stocks. The market is watching closely to see whether the Moderna effect can last.

This shows how deep the market's confidence in the pharma and biotech sector runs.

mRNA vaccines achieved success in cancer vaccines, a field where repeated failures had persisted for nearly 30 years, and big pharma's race to secure mRNA technology is intensifying. Following this success, mRNA vaccine trials are expected to expand in earnest beyond melanoma to indications such as non-small cell lung cancer.

US biohealthcare budgets could also flow into domestic biotech companies.

Nabaio hit its daily limit-up before closing up 19%, and Algenomics rose 16%. Several other related stocks, including Stipharm, Terragen Etex, and Olix, also posted gains together.

Algenomics is the most aggressive in developing mRNA therapeutics. In particular, the Keytruda SC trial it conducted with Merck was prepared for non-small cell lung cancer, and the combination therapy of Keytruda with mRNA treatments is drawing attention.

Keytruda SC's quarterly sales reached $460 million. If it expands to a non-small cell lung cancer indication and is commercialized, Keytruda's sales are expected to grow even faster. Right now, evaluation of future platform value rather than current earnings is the key factor raising medium- to long-term expectations for Alteogen.

Beyond Alteogen, mRNA-related companies such as Olix, Algenomics, and GI Innovation are emerging as related stocks. Companies with technology transfer experience are likely to gain attention at academic conferences.

A strong bull market in the bio sector could unfold in the second half. Earlier this year, the US FDA sharply eased clinical regulations, and the adoption of AI is speeding up clinical verification and result generation. A synergy between the bio industry and AI is expected.

In the short term, attention should focus on CDMO and biosimilar companies whose earnings are confirmed. In the medium to long term, platform technology holders such as Alteogen, which can export technology, look promising. A strategy of closely examining these companies is important.

Alteogen warrants attention because the strong scalability of the Keytruda platform is being confirmed once again. If that scalability continues to be demonstrated, Alteogen's corporate value could be re-rated, and a valuation re-rating is likely.