Lunit, a medical artificial intelligence (AI) company, saw its stock surge after announcing a research agreement with U.S. biotech firm Summit Therapeutics to develop a next-generation immuno-oncology drug. Analysts suggest that the potential for a reevaluation of the company's value next year also influenced investor sentiment.
According to the Korea Exchange, as of 9:44 a.m. on October 26, Lunit's shares rose by 3,390 won (30.00%) to 14,690 won, hitting the upper limit.
Lunit stated that it has signed a research agreement with Nasdaq-listed Summit Therapeutics to develop the immuno-oncology drug ivonescimab using AI biomarker research.
In this collaboration, Summit plans to utilize Lunit's AI pathology analysis platform, Lunit Scope IO, to analyze the distribution of cancer cells and immune cells, aiming to identify patient groups likely to benefit from the treatment. Biomarkers are biological indicators that predict a patient's response to specific drugs.
Recently, multinational pharmaceutical company AstraZeneca announced a strategic equity investment of $2 billion (approximately 27 trillion won) in Summit. Additionally, it revealed plans to pursue a global development project combining its antibody-drug conjugate (ADC) with ivonescimab. The involvement of Lunit's AI technology in the ivonescimab research has drawn significant attention.
Analysts have also raised the possibility of reevaluating Lunit's corporate value. Han Seung-yeon, a researcher at NH Investment & Securities, noted, "Previously, Lunit was classified as an AI diagnostic company focused on cancer screening, but it is now expanding its business scope into the AI drug value chain. It is the AI company to watch in the domestic healthcare sector next year."
He added, "Given that the existing core business of cancer screening can explain most of the current market capitalization, it is now time to reflect the hidden value of the AI biomarker business, estimated at 500 billion won."
* This article has been translated by AI.
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