Biotech and pharmaceutical shares are bouncing back from recent massive slides amid controversy over Samsung BioLogics’ alleged window dressing.
Major drugmakers and biotech firms listed on KOSPI and KOSDAQ all rose on Wednesday from the previous day.
Samsung BioLogics shares also went up by 7.4 percent on Wednesday, closing at 398,000 won ($369) per share. The stock price has recovered to the level of early this year’s 389,500 won.
Samsung BioLogics shares hit the highest at 600,000 won on April 10 but plunged last week due to the financial regulator’s claim that the company violated accounting standards.
However, a massive purchase by institutional investors and foreigners pushed up the stock price of Samsung BioLogics on Wednesday. Still, the prices are 18 percent lower compared to those before the accounting issue broke.
Shares of Hanmi Pharmaceutical and its holding firm Hanmi Science failed to recover and remained 20.7 percent and 32.5 percent lower, compared to early this year, although their shares climbed about 6 percent on Wednesday from the previous day. Observers said the repercussion from Hanmi’s giving up on the development of lung cancer drug Olita was still affecting the stock price negatively.
Hanmi Pharmaceutical shares have shown the steepest fall among top 10 biotech and pharmaceutical shares by market cap, compared to early this year.
Shares of Hanmi Science and Hanmi Pharm started to plunge since April 11, before the announcement of scrapping Olita development.
Hanmi Pharm shares are traded at around 469,500 won, and Hanmi Science, 76,900 won, which are similar to the level on April 30. Some analysts speculated that their stock prices might have bottomed to make a rebound soon.
Among top drugmakers on KOSDAQ by market cap, Genexine, Celltrion Pharm, and Medytox have gained more than 30 percent, compared to early this year.
On the other hand, SillaJen, Kolon TissueGene, and CHA Biotech have lost more than 30 percent.
SillaJen shares have nosedived about 32 percent since early this year amid analysts’ warnings on a bubble in biotech stocks.
CHA Biotech’s stock price halved in March due to the regulator’s designation of the company as an administrative issue. The price is still 32 percent lower compared to early this year.