The share prices of Bioneer, which drew attention by releasing a shampoo brand that relieves hair loss, plunged on Monday, making investors and analysts curious about its background.
Bioneer stocks ended Monday’s trading at 51,300 won ($38.7) a share, down 29.92 percent from 73,200 won the previous trading day and hitting a permissible daily low. It briefly rebounded to 77,600 won in mid-morning but turned downward soon.
That contrasts starkly with the upward trend that began on April 26 and hit 74,200 won on Wednesday last week.
The price fluctuation is attributable to the release of hair loss-relieving shampoo CosmeRNA and its aftereffects. The share price, which had hovered in the 40,000 won range for three months since February, began to soar immediately after the company launched the shampoo brand early this month, stock analysts said.
According to Bioneer, CosmeRNA is the first shampoo product worldwide applied with ribonucleic acid technology. It is a functional cosmetic, not a drug approved by a regulatory agency. On May 2, Bioneer opened its mall for the sale of CosmeRNA. The company is also reportedly preparing to enter Amazon for its overseas marketing.
Later in the day, Bioneer expressed its official position on stock price drops on its website. In the statement, the company drew a line on claims by some that CosmeRNA’s sale has hit a snag.
"We received many inquiries asking whether there were problems within the company or concerning CosmeRNA’s sales. However, there are no internal problems at all, and the company is proceeding smoothly with procedures for overseas marketing through Amazon,” the statement said.
Bioneer added that the company monitors market reactions and sales trends to the brand’s price after opening its mall on May 2.
"Based on our sales trend data, we think it very encouraging that many women with hair loss, here and abroad, have purchased the product through major hair loss communities although the company has not conducted separate advertising and marketing activities,” it said.