UPDATE : Friday, August 7, 2020
Biopharma stocks listed in H1 perform poorer than non-pharma peers
  • By Nam Doo-hyun
  • Published 2018.07.03 15:08
  • Updated 2018.07.03 15:08
  • comments 0

Pharmaceutical and biotech companies listed in the first half marked a slower rise in stock price gains than non-pharmaceutical counterparts, data showed Tuesday.

The eight pharma and biotech companies that went public in the first half of this year are Korea Arlico Pharm, DongKoo Bio & Pharma, EDGC (Eone Diagnomics Genome Center), Enzychem Lifesciences, Osteonic, Carelabs, Genoray, and Sejong Medical.

The stock prices of the eight companies as of Tuesday morning were 31 percent lower on average than their closing prices on the day of initial public offering (IPO). Compared with the offering price, their average stock price was up 19 percent.

On the other hand, 13 non-pharma and non-biotech companies that went public in the first half saw their share prices rise 46 percent on average as of Tuesday morning, compared with those on the IPO day. Compared with the offering price, their share prices jumped 96 percent.

Biopharmaceutical firms, in particular, suffered price declines compared to the IPO day.

Shares of Osteonic and Carelabs fell 49 percent as of Tuesday from the day they went public on KOSDAQ. Korea Arlico Pharm stocks also slid 42 percent, and DongKoo Bio & Pharm and Sejong Medical, 40 percent, respectively.

Genoray and EDGC shares also went down 39 percent and 26 percent, respectively.

However, among the non-biotech and non-pharma firms listed in the first half, stock prices at nine firms on Tuesday were higher than those on the IPO day. The other four went down.

Analysts said the IPO market in the first half was half successful.

Although IPOs occurred in various sectors, public offering prices were lower than expected due to the accounting controversy in the biopharmaceutical industry, they said.

“The total number of IPOs was 21, the same as last year, but the total capital raised was 780 billion won ($702 million), which was too small compared to last year’s 4.76 trillion won,” SK Securities said in a report on Tuesday. “This was affected by SK Lubricants’ cancellation of its IPO and accounting issues sparked by Samsung BioLogics.”

“However, the newcomers came from various industries, and the IPO subscription rates were also high,” the brokerage said. “The government’s policy to ease IPO conditions for KOSDAQ and measures to vitalize venture funds seem to have affected the IPO market positively.”


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