BlackRock Expands K-Bio Stakes as mRNA Technology Reshapes the Cancer Treatment Market

This shift has also been met with positive reactions in the stock market, leading to share price gains for related companies.

mRNA technology was mainly used in conventional vaccines, but its application to cancer treatment is opening new frontiers. Unlike existing therapies, mRNA enables information delivery and personalized treatment, and its ease of production gives it high versatility. This is seen as a new approach that goes beyond the limits of existing anticancer treatments and has the potential to change the cancer treatment paradigm.

Even healthy people generate more than 3,000 cancer cells a day, but once cancer develops, the count surges past one trillion, making complete resolution difficult. mRNA technology is expected to effectively address recurrence by enabling tailored treatment that targets cancer cells according to each patient's constitution. For patients whose bodies have become prone to cancer recurrence, mRNA can provide a personalized defense system.

Alteogen's subcutaneous (SC) formulation technology is drawing market attention. The method allows injection into the abdomen or buttocks, and it has high value for use in combination therapy with existing treatments such as Keytruda. Conventional IV infusions were painful and made securing veins difficult, but SC formulations greatly improve patient convenience and are expected to increase their use in clinical settings.

As issues around Moderna's mRNA technology spread, expectations for Alteogen's commercialization are growing. The market views the likelihood of a shift to more convenient formulations favorably, and Alteogen and other related bio stocks posted strong gains of roughly 4% to 8%.

Once mRNA technology passes clinical trials and receives FDA approval, demand for mass production will surge. At that stage, outsourcing large-scale production to CDMO (contract development and manufacturing organization) firms is more efficient than producing in-house. During the COVID-19 pandemic, mRNA CDMO share prices rose sharply, and commercialization of mRNA cancer vaccines is expected around 2027.

Bio investing is hard to succeed at through vague expectations alone, as it was in the past. Now it is important to closely check intermediate milestones and confirm whether actual contracts are being won. Clinical approval risks and demanding later-stage hurdles exist, so investors should recognize these risks and approach carefully.

As commercialization advances, the importance of outsourced manufacturing grows, and ST Pharm has strengths in quickly mass-producing products whose safety and efficacy have already been proven and supplying them to the market. It also holds high competitiveness in manufacturing cost and production efficiency.

For large-scale production, a strategy of using multiple CDMO providers is common. Drug companies can have several candidate firms produce on trial and then give more work to those that deliver faster, or spread factory locations by region to expand outsourcing opportunities. Such diversification of production bases is likely to benefit a wide range of CDMO providers.

Raw material suppliers can run stable businesses regardless of whether a new drug succeeds. Like the case of a supplier providing materials to 5 of the 27 approved oligonucleotide therapies, the direct risk from the success or failure of treatment development is low. This is viewed as a relatively stable investment alongside outsourced manufacturers.

As demand for mRNA vaccines and therapeutics grows, demand for nucleosides, their basic raw material, rises directly. Much like the relationship between semiconductor substrates and CCL (copper-clad laminate), when expectations for the mRNA market grow, the share prices of raw material suppliers also tend to rise. Expectations from opening new mRNA markets further amplify the investment value of raw material companies.

When investing in drug development companies, clinical data is extremely important. GC Biopharma has now entered Phase 2 and plans to start Phase 3 in the second half of 2025, aiming for approval in 2028. Eyegene has completed Phase 1 and is conducting trials in Australia. Such drug developers tend to see sharp share price swings before and after clinical data releases, so investors should account for this carefully.

Stock selection and response can vary by investment style. Those who prefer stable investing should focus on raw material and outsourced manufacturing companies. Aggressive investors seeking high returns may consider clinical-stage drug stocks such as GC Biopharma or Eyegene. In either case, it is important to set a profit-taking strategy periodically based on clinical data and disclosures.