Biopharma stocks lost ￦68 trillion in 2022

Headwinds such as the waning interest in Covid-19-related stocks and a looming global economic recession sapped the market capitalization of Korean biopharmaceutical companies by 68 trillion won ($53.4 billion) in 2022, industry data showed.

According to financial data of 253 biopharmaceutical stocks listed on the Korean stock market, the biopharmaceutical sector saw a total loss of 68.3 trillion won in 2022, a 25 percent plunge from a year earlier. 

Of the total 253 biopharma companies, 230 companies, or 90 percent, recorded losses last year. Sixty-six companies suffered a stock price cut by more than half, and 150, by more than 30 percent.

Notably, data from the Korea Exchange (KRX) showed that the prices of biopharmaceutical stocks had fallen more than 30.3 percent this year based on KRX Healthcare, which consists of 92 healthcare-related stocks in the Kospi and Kosdaq markets.

The company with the largest decline in share price last year was BNC Korea, which fell 82.6 percent in the aftermath of an increase in short selling and failure to receive emergency use approval (EUA) from the U.S. Food and Drug Administration for its Covid-19 treatment.

Enzychem LifeSciences’ shares also decreased by 81.9 percent during the same period due to the failure of the development of Covid-19 treatment, the failure of a paid-in capital increase, and the voluntary suspension of phase 2 clinical trials for neutropenia treatment.

Cellid also fell 76.1 percent due to the decision to stop clinical trials early for its Covid-19 treatment candidate.

Other companies such as EuBiologics (74.6 percent), Eyegene (73.7 percent), SK Bioscience (67.3 percent), Genexine (66 percent), GeneOne Life Science (56 percent), Seegene (55.4 percent), and SD Biosensor (46.1 percent) also saw their shares fall significantly in 2022, compared to the previous year.

The largest decrease by market cap was SK Bioscience (11.91 trillion won), followed by Celltrion (4.7 trillion won), Celltrion Healthcare (3.2 trillion won), SD Biosensor (2.4 trillion won), SK Biopharmaceutical (2.05 trillion won), Celltrion Pharm (2.02 trillion won), Samsung (1.8 trillion won), Seegene (1.79 trillion won), Mezzion (1.63 trillion won), and Hanmi Science (1.5 trillion won).