Amid escalating North Korea risks caused by the North’s nuclear and missile provocations following the U.S. verbal attacks, bio and pharmaceutical stocks are facing both favorable and unfavorable factors because of expectations about the “Mooncare.”
Some market watchers predict bio and pharmaceutical stocks will benefit from sharply expanded insurance coverage as pledged by the Moon Jae-in administration.
Bio and pharmaceutical companies saw their share prices rise despite the overall decline of the Korea Stock Price Index (KOSPI) amid heightening tension over the Korean Peninsula.
According to the analysis of stock prices of 43 listed bio and pharmaceutical companies since President Moon’s announcement to expand insurance coverage on Aug. 9, the share prices of 29 companies have risen as of Monday, while those of the other 14 have fallen.
Market watchers said the “Mooncare” could have helped biopharmaceutical firms fend off North Korea risks.
"Pharmaceutical stocks, like food and beverage shares, are insensitive to business cycles. You can’t expect their share prices rise and fall along with the overall market movements,” an industry executive said. “In addition to their ‘business-resistant’ nature, the expectations about Mooncare seem to have helped these shares fare relatively well.”
"The bio and pharmaceutical shares showed good results because of the expectation of Mood-care," the official predicted.
The share price of Hanmi Pharmaceutical한미약품 showed the highest rise of 17.83 percent from 345,000 won ($304) to 406,500 won, followed by Whanin Pharm환인제약(14.06 percent), Reyon Pharmaceutical이연제약(13.71 percent), YuYu Pharm유유제약(13.40 percent), United Pharm유나이티드제약(11.79 percent) and Green Cross Holdings녹십자홀딩스(10.28 percent) since Aug. 9
On the other hand, the share prices of Jeil Pharm Holdings제일파마홀딩스, the holding company of Jeil Pharmaceutical제일약품, marked the steepest fall of 11.1 percent, from 44,150 won to 39,250 won, followed by Ildong Pharmaceutical일동제약(-7.69 percent), Wooridul Pharmaceutical우리들제약(-5.30 percent), Ildong Holdings일동홀딩스(-5.13 percent) and Kukje Pharma국제약품(-4.05 percent).
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