The recent stock surge and subsequent correction surrounding Sam Chun Dang Pharm have raised troubling questions about the company’s commitment to transparent communication and responsible investor relations.

While the company may attempt to celebrate a scientific milestone, the way it has framed and disseminated information around its oral GLP-1 generic candidate shows a worrying pattern of overstatement, selective disclosure, and, arguably, investor manipulation.

Sam Chun Dang Pharm issued a press release on Wednesday claiming that its oral GLP-1 drug candidate had passed a bioequivalence (BE) trial against Novo Nordisk’s oral GLP-1 antagonist Rybelsus (ingredient: semaglutide).

But what truly sent its stock soaring 30 percent on Wednesday was not the pharmacokinetic data. It was the implication that Sam Chun Dang had circumvented the patent related to Rybelsus, which is a far more consequential obstacle.

In the release, the company stated that it had developed a proprietary absorption enhancer that “avoided” infringement of Rybelsus’s key formulation patents involving SNAC (synthetic N-acylated amino acid derivative of salicylic acid), which is used to enhance the absorption of semaglutide and protect it from degradation by gastric enzymes when administered orally.

It further claimed this approach would allow it to enter the market as early as 2026, strongly suggesting that regulatory clearance for patent freedom was a foregone conclusion. Nowhere did the company clarify that it had not received any such ruling from patent authorities in Korea or abroad.

As a result, investors flooded in, interpreting the statement as a signal that Sam Chun Dang had resolved the primary bottleneck facing any would-be Rybelsus generic, sending the company’s shares skyrocketing 29.71 percent to close at 213,000 won ($154.45), the upper trading limit for the day on Wednesday. 

Yet under Korean and global pharmaceutical law, launching a generic version of a drug still under patent protection requires one of two outcomes –- either a formal finding that the generic product does not infringe on existing patents (via patent challenge or scope review), or the expiration or invalidation of those patents.

At this point, neither has occurred.

While the core compound patent for semaglutide expires in 2026, multiple secondary patents, including formulation and method-of-use protections remain in force.

Industry analysts widely agree that these layers of protection will effectively block generic entry until at least 2031, barring a successful legal challenge or invalidation. Any suggestion that the path is clear before then is misleading at best.

Sam Chun Dang later admitted to news outlets that no patent office has reviewed or approved its patent position, and that a future partner, who remains unnamed, would pursue that process "eventually.”

Notably, as of this writing, neither the press release nor any details of the BE study appear on the company’s website or regulatory filings.

The company also has a recent history of delayed disclosures, narrowly avoiding designation as an unfaithful disclosure entity by Korea Exchange earlier this year over a supply deal with Fresenius Kabi.

In effect, the company presented a potential future scenario as if it were a settled fact -- crossing the line from speculative optimism into active misrepresentation.

Moreover, the company’s projections for commercial launch by 2026 appear speculative at best.

If the drug relies on a novel absorption enhancer, it would not qualify as a standard generic.

Full clinical trials to prove safety and efficacy would likely be required. Yet Sam Chun Dang has not disclosed whether such studies are planned or underway, nor has it outlined a realistic regulatory pathway.

By releasing selective data and overstating its regulatory position, Sam Chun Dang has willfully blurred the lines between scientific progress and promotional spin.

That the stock continues to climb despite these unresolved issues does not absolve the company of responsibility.

As of market close Friday, the company stock stood at 230,000 won, up 2 percent from the previous trading day.

If Sam Chun Dang truly possesses a breakthrough, it should act like it. That means full disclosure of trial parameters, third-party validation, and unequivocal clarification on its patent status.