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Bio and Pharmaceutical Stocks Smiling in the First Week of 2017The stock price plunge of Bukwang Pharm whose toothpaste is prohibited from being sold
  • By Nam Doo-hyun
  • Published 2017.01.17 09:09
  • Updated 2017.03.27 15:37
  • comments 0

Some bio and pharmaceutical companies whose stock prices drop range were large last year started smoothly in the beginning of this year, which makes investors have expectation.

Korea Biomedical Review(KBR) analyzed price earnings ratio for the week from 30th December 2016 to 6th January 2017 based on the closing price on 29th December 2016.

The 94 target companies are classified as bio companies in the securities industry. Some companies (related to gene, reagent, equipment, raw material medicines, and medicines for animals, cosmetics, health functional food, and KONEX market) are excluded.

The analysis shows some companies that recorded low price earnings ratio last year are on the high rank. ViroMed in KOSDAQ market is on the first place in terms of the earnings ratio (10.6%) for the week. Late last year, the stock price decreased 39.8% compared with that at the beginning of last year. ViroMed that develops gene treatment will do clinical trial 3 stage of VM202-DPN (Diabetic neuropathy) and VM202-PAD (ischemic diabetic foot ulcer) in the United States and Europe and clinical trial 2 stage of VM202-ALS (Amyotrophic Lateral Sclerosis) in the United States.

Last October, it was ready to do large-scaled clinical trials after capital increased worth of about 140billion won.

C-TRI that develops the peptide new medicine is ranked in the second place (9.8%). C-TRI released the medicine (Citrelin OD) to cure spinocerebellar degeneration for the first time in Korea in 2015.

The listing date in KOSDAQ was December 2015 and its stock price increase has continued since 26th December 2015.

The stock price of PROSTEMICS (9.7% for earnings ratio) that develops cell proteins soared after it registered the patent of technology related to cartilage disease treatment.

The increase range is the largest on the 5th when its patent registry (pharmaceutical composition for treatment to prevent or cure bone diseases or cartilage disease) made public. Last year, its stock price decreased 0.7%.

SAMSUNG PHARM. whose stock price dropped 50% last year increased 9.3% for the week. It is ranked in the first place among bio and pharmaceutical companies in terms of earnings ratio in the KOSPI market.

It made a contract with Newtheranex to sell ‘Gasmyungsoo gold’ in Korea beginning of 2nd January 2015. But it cancelled the contract on 9th December 2016 because Newtheranex didn’t provide the quantity that they had promised to provide. The sales of Gasmyungsoo were 3.989billion won (9.46% of the total sales) in 2015.

On the other hand, it made an ODM contract with PICO ENTECH to pave a way for export the hangover pill, Kislip to China in 2015.

Investors are much interested in ‘the J.P. Morgan healthcare conference’ held in Westin St. Francis in San Francisco from the 9th to the 12th.

J.P. MorganChase&Co. has held the conference every year and is the biggest event in the bio and pharmaceutical industry. Because world-renowned pharmaceutical companies and related experts participate in the conference, many global contracts such as technology transfer etc. have been made in or after the conference.

Therefore, investors are much interested in domestic companies that take part in the conference.

In fact, except for Celltrion, stock prices of the companies that participate in the conference increased for the week in the KOSDAQ market. The listed companies that participated in the conference are ▲Celltrion, ▲Seegene, ▲AHNGOOK pharm., ▲CrystalGenomics, ▲Viromed, and ▲Bioleaders. Among them, the most outstanding company is Bioleaders that was listed from KONEX market to the KOSDAQ market on 7th July 2016 because it was designated as the technology growth company.

Bioleaders achieved 26.9% increase for the week. Its closing price soars from 6,420 won to 8,300 won on 5th January 2016.

Bioleaders that produces diagnostic kits mostly sells health functional food, cosmetics, etc. It also belongs to vaccine-related stocks including Green Cross, PharmswellBio, Seegene, KOREAN DRUG etc. Late last year, it announced it would develop AI vaccine with the research teams of Chungnam National University and Chungbuk National University.

Molecular diagnosis company, Seegene, announced it will take part in the conference on the 5th. The company plans to introduce one platform molecular diagnosis solution. Its closing price was 34,950 won last year and 36,600won for the week.

It remains to be seen whether Viromed can get attention from multinational pharmaceutical companies about its major product, VM202.

Besides, the close prices of the structural genomics-based new drug development company CrystalGenomics and AHNGOOK that sells drugs for respiratory and circulatory diseases and anti-inflammatory analgesic drugs were 17,850won and 12,950won on the 6th respectively.

On the other hand, there are stocks whose prices decreased more than 5% in a week. The price of BUKWANG PHARM. plunged -6.3%, the biggest decrease range because it couldn’t sell its major products for 3 months. The company couldn’t sell some products labelled with wrong date of manufacture from 6th January to 5th April.

Boryung, whose stock price drops 6% in the first week, narrowly avoided coming in last. The securities industry expects the company to expand sales with a new drug, Kanarb for high blood pressure.

Meanwhile, there is a difference between a close price on a previous day and an opening price on a day because of simultaneous orders before opening the stock market.


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