Biopharmaceutical firms are showing strong performance on South Korea’s tech-heavy Kosdaq market.
As of Monday at noon, four among the top five Kosdaq-listed firms by market capitalization, or eight among the top 20, were biopharmaceutical companies. The combined market cap of the eight biopharma firms takes up about 20 percent of the Kosdaq’s total market cap.
Celltrion Pharm, in particular, has seen its shares continuously jump this year and recently made a new entry into the top 20 Kosdaq firms by market cap. Mainly involved in domestic sales of Celltrion products, the company’s stock price surged 160 percent from 18,700 won ($16.7) on the day of extraordinary shareholders’ meeting on Sept. 29 to 48,600 won during the intra-day trading on Monday.
On Monday at 2 p.m., Celltrion Pharm’s shares rose to 47,900 won, up 18 percent from the previous trading day, which was the largest daily increase among listed pharmaceutical and biopharmaceutical firms.
Celltrion Pharm’s market cap, which exceeded 1.6 trillion won on Monday, ranked 17th among the Kosdaq’s top 20 firms in market cap. The rise of the stock price is attributed to Celltrion’s moving from Kosdaq to the main bourse Kospi, and Celltrion Chairman Seo Jung-jin’s recent comment on his plan to nurture generic drugs, analysts said.
Stock prices of Celltrion and Celltrion Healthcare, the distributor of Celltrion products, also went up 6 percent and 9.5 percent, respectively, on Monday from the previous trading day. Celltrion group – Celltrion, Celltrion Healthcare, and Celltrion Pharm – accounts for 13.42 percent of the total Kosdaq market.
The eight largest biopharmaceutical companies by market cap among the top 20 Kosdaq firms are Celltrion with 23 trillion won market cap, ranked at top; Celltrion Healthcare with 9.1 trillion won, ranking second; SillaJen with 5.2 trillion won, third; TissueGene with 3.1 trillion won, fifth; Medytox with 2.6 trillion won, seventh; ViroMed with 2.29 trillion won, eighth; Hugel with 2 trillion won, 11th; and Celltrion Pharm with 1.6 trillion won, 17th.
The combined market cap of the eight firms amounts to 251.99 trillion won or 19.52 percent of the total market cap of Kosdaq.
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