Shares of Sam Chun Dang Pharm experienced further losses on Wednesday, reversing a previous rally that had propelled the stock to the top of the Kosdaq. Investors are now questioning the sustainability of the recent gains.
As of 2 p.m., Sam Chun Dang Pharm’s shares were trading at 754,000 won ($500), a decrease of 75,000 won, or 9.17 percent, from the previous trading session. Despite opening at 760,000 won, the stock struggled to recover and continued to fluctuate, briefly reaching a day’s low of 753,000 won.
This drop follows a significant plunge in the previous session, where the stock hit its lower limit, closing at 829,000 won. This represented a loss of 355,000 won, or 29.98 percent, in a single day.
The recent downturn is a stark contrast to the surge that saw the stock reach an intraday high of 1.23 million won on Monday, a rise of over 400 percent from its starting point of around 240,000 won at the beginning of the year.
Investor sentiment appears to have soured following a recently announced US licensing agreement for an oral insulin and weight-loss pill. The deal failed to meet market expectations, with investors expressing concerns about the agreement’s terms. Furthermore, Sam Chun Dang Pharm’s decision not to disclose the counterparty, an uncommon practice for a cross-border pharmaceutical deal, has raised eyebrows.
Adding to the negative pressure, the company is currently facing allegations of stock manipulation. Despite the company’s intention to pursue legal action, the controversy continues to negatively impact investor confidence.
Even the Korea Exchange, the bourse operator, has indicated potential penalties for disclosure lapses, citing the company’s failure to properly file its earnings report in February.
The exchange highlighted the company’s omission of an official disclosure regarding its earnings, noting that the information was initially released via a press statement on Feb. 6. A final decision on the matter is expected by April 23.
The significant decline has pushed Sam Chun Dang Pharm down to fourth place on the Kosdaq in terms of market capitalization. It now trails behind battery material manufacturer EcoPro, its affiliate EcoPro BM, and biotech company Alteogen, after briefly holding the top spot late last month. As of 2 p.m., its market capitalization stood at 17.87 trillion won.
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