A set of unfavorable factors has engulfed biopharmaceutical companies to pull down their stock prices this month, extending last year’s downward trend.

The market capitalization of biopharmaceutical stocks, which shrank by 70 trillion won ($58.8 billion) last year, has shed an additional 30 trillion won in January alone.

According to the Korea Exchange (KRX), the prices of biopharmaceutical stocks have fallen more than 12 percent this year based on KRX Healthcare, which consists of 92 healthcare-related stocks on the Kospi and Kosdaq market.

According to analysts, their continuous decline follows a series of events that have hurt investor sentiment in the past few weeks.

After the news of massive embezzlement at Osstem Implant by employee hit the market early this year, the financial authorities started discussing Celltrion's alleged accounting fraud, drug regulators rejected MedPacto's plan to change the design of the phase 2 trial of Vactosertib, and stock market operators decided to delist Sillajen, freezing investors’ sentiment on the industry.

Biopharmaceutical and biotech stocks, the leading growth stocks, also took a direct hit by the foreign capital outflows in the wake of the U.S. Fed's rate hike, followed by the Bank of Korea’s corresponding move.

The market cap of 239 biopharmaceutical companies listed on the stock market showed a decrease of 30 trillion won as of Thursday.

The stock recording the biggest drop this year is Samsung Biologics. This year alone, the company’s stock price fell by nearly 10 percent, losing a market cap of 5.8 trillion won.

Celltrion was next by shedding about 4.1 trillion won, followed by SK Bioscience (3,2 trillion won), Celltrion Healthcare (2.1 trillion won), Celltrion Pharmaceuticals (1.2 trillion won), and SK Biopharmaceuticals (940 billion won).

"Investors are turning their back to biopharmaceutical stocks as the sector has had a string of unfortunate events that have undermined the credibility in the sector," Lee Jun-soo, an analyst for Prophet Asset Management, told Korea Biomedical Review. "I expect the industry to continue its downward spiral unless before regaining the trust of the industry."

As the sector faces an uphill battle amid continued woes, including the possible delisting of Kolon Tissuegene in February, the sentiment will not recover soon, Lee added.

Market cap changes of top 10 biopharma stocks in January                                                                           (Unit: won)