Pharos Soars on Nvidia Link, Daewon Tops KOSPI[K-Bio Pulse]

• 

[NA Eun-kyung, Edaily Reporter] South Korean pharmaceutical and biotech stocks staged a rare broad-based rally on Aug. 5 with investor sentiment lifting shares across multiple sectors.

As Nvidia CEO Jensen Huang's visit to South Korea fueled enthusiasm for artificial intelligence-related stocks Pharos iBio surged as investors revisited the company's past ties to Nvidia.

Medical AI company Coreline Soft posted double-digit gains on expectations for expanding opportunities in the European lung cancer screening market. Daewon Pharmaceutical, meanwhile, became the only KOSPI-listed company to hit the daily upper trading limit after highlighting promising preclinical data for its next-generation obesity treatment candidate.

AVIEW LCS, Coreline Soft's AI-powered diagnostic support solution for predicting lung cancer malignancy. (Source=Coreline Soft)

Coreline Soft Rises on European Lung Cancer Screening Momentum

According to KG Zeroin's MP DOCTOR, Coreline Soft climbed 13.96% to close at 3,225 won on Aug. 5.

Market observers attributed the rally partly to growing investor interest following the public release of a PharmEdaily article titled "Coreline Among Top AI Providers in European Lung Cancer Screening Evaluation, Poised to Benefit From Germany's National Screening Program." The report was initially published as premium content on July 30.

Coreline Soft's AI-powered lung cancer screening solution, AVIEW LCS, was recently recognized in a comparative study published by European Radiology as one of the most comprehensive products among 16 CE-certified lung cancer screening AI solutions.

The journal, published by the European Society of Radiology (ESR), is considered a leading Q1 publication in the field of radiology.

Researchers highlighted AVIEW LCS for supporting a broad range of screening functions beyond simple lung nodule detection, including growth assessment, malignancy prediction and structured reporting. Such capabilities are increasingly viewed as critical as national screening programs in Europe shift their focus from pure diagnostic accuracy toward operational efficiency.

Germany's decision in April to integrate low-dose computed tomography (CT)-based lung cancer screening into its national health insurance system has also been viewed as a positive development for the company.

Coreline Soft signed supply agreements with 11 German medical institutions during the first quarter alone, already surpassing its total annual contract volume from last year. The company counts leading European hospitals such as Charité and Heidelberg University Hospital among its customers.

"Overseas sales accounted for more than 60% of total revenue for the first time, while recurring revenue expanded to 49%," a Coreline Soft official said. "As competition in the global medical AI market shifts from accuracy to operational experience, AVIEW LCS's broad screening capabilities should further strengthen our strategy in European national screening programs."

Daewon Pharmaceutical Gains on Next-Generation Obesity Drug Potential

Daewon Pharmaceutical also drew strong investor interest after unveiling preclinical obesity drug data a day earlier. Shares jumped 29.94% to close at 11,240 won, reaching the daily price limit.

The company is scheduled to present preclinical findings for a quadruple agonist targeting GLP-1, GIP, glucagon (GCG) and gastrin at the American Diabetes Association (ADA 2026) Scientific Sessions in New Orleans from Aug. 5 to 8.

The candidate is being co-developed with PharmEarth Bioscience and is designed not only to enhance weight loss beyond existing GLP-1 therapies but also to provide pancreatic beta-cell protection and renal function benefits.

According to preclinical data, diet-induced obese mice experienced body-weight reductions of more than 50% compared with controls after 22 days of treatment. Fasting blood glucose levels also showed significant improvement.

The program builds on a project Daewon Pharmaceutical licensed in from PharmEarth Bioscience in 2023.

PharmEarth Bioscience was founded by CEO Yang Jae-sung, who previously led metabolic and endocrine research at Dong-A ST. The company is developing multi active peptide therapies targeting obesity, neuropathic pain and inflammatory bowel disease.

Pharos Becomes a "Jensen Huang Theme Stock," but Are Nvidia Benefits Real?

The hottest stock of the day was AI-driven drug discovery company Pharos iBio, which surged 24.13% to 7,820 won.

The rally came amid a recent trend in the Korean stock market where companies linked, directly or indirectly, to Jensen Huang have seen sharp gains whenever the Nvidia chief makes public comments or visits the country.

Pharos iBio appears to have benefited from being categorized as one of these so-called "Jensen Huang theme stocks."

In April 2023, Pharos iBio became the first Korean AI drug discovery company to be accepted into Nvidia Inception, Nvidia's startup support program. At the time, the company attracted attention because membership provided access to Nvidia's BioNeMo life sciences AI platform, technical support and cloud infrastructure benefits.

However, participation in the Inception program should not be interpreted as an endorsement of a company's technology or business prospects, according to Nvidia.

The program is designed as an ecosystem support initiative for AI startups rather than a certification process. Eligibility requirements generally include being less than 10 years old, maintaining development personnel and operating as an incorporated entity.

Notably, Pharos iBio is no longer an Nvidia Inception member. Because Nvidia excludes publicly listed companies from the program, the company's membership is believed to have ended following its KOSDAQ listing in 2023.

Market experts have also cautioned investors against focusing solely on symbolic ties to Nvidia.

"What matters is not who meets Jensen Huang, but who can generate recurring revenue within the Nvidia ecosystem," Kim Du eon an analyst at Hana Securities said in a recent report. "Investors should buy purchase orders, not photographs from events."

A Pharos iBio official declined to comment on the company's current collaboration status with Nvidia, saying only that there was "nothing that can be disclosed officially."