Samchundang Pharmaceutical Stocks Crash 86% from Peak After FDA Response Surge

Samchundang Pharmaceutical's stock fell 29.87% to 167,600 won on May 21 in the Kosdaq market, hitting the lower trading limit one day after a 29.82% surge. The previous day's rally followed the company's announcement of receiving a Pre-ANDA response from the US Food and Drug Administration (FDA) for its oral semaglutide generic application. The stock is now down 86.4% from its March 30 intraday high of 1,233,000 won, when expectations for the oral obesity treatment drug market drove the company to become the largest Kosdaq stock by market capitalization.

Samchundang Stock Falls 86.4% from March Peak

The stock rose over 300% from the beginning of the year through late March, reaching the position of Kosdaq's leading stock. After reaching the intraday high of 1,233,000 won on March 30, the stock entered a sharp decline following a new license agreement disclosure announced immediately after the regular trading session ended that day. An investment of 100 million won at the peak would be valued at approximately 13.58 million won at current prices.

Korea Exchange Designates Samchundang as Unfaithful Disclosure Entity in April

Allegations of false disclosure surrounding the contract details led to a sharp deterioration in investor sentiment. Korea Exchange designated Samchundang Pharmaceutical as an unfaithful disclosure entity in April, citing "failure to disclose fair disclosure of business performance forecasts and predictions."

NH Investment Securities Data Shows 94.6% of Investors at Loss

According to NH Investment Securities' analysis of its mobile trading system users, as of May 16 when the stock closed at 184,100 won, individual investors' average purchase price was 448,441 won. The data showed 94.6% of all investors were recording losses. The stock, once nicknamed "Cheondang" (heaven), is now referred to as "Hwangcheondang" (underworld) in online investment communities.

FAQ

What caused Samchundang Pharmaceutical stocks to fall on May 21?

Samchundang Pharmaceutical's stock fell 29.87% to 167,600 won on May 21, hitting the lower trading limit as profit-taking selling emerged one day after a 29.82% surge following the company's announcement of receiving a Pre-ANDA response from the US FDA.

Why did Korea Exchange designate Samchundang as an unfaithful disclosure entity?

Korea Exchange designated Samchundang Pharmaceutical as an unfaithful disclosure entity in April, citing "failure to disclose fair disclosure of business performance forecasts and predictions" after allegations of false disclosure surrounding a license agreement announcement on March 30.

How many Samchundang investors are at a loss according to NH Investment Securities data?

NH Investment Securities data as of May 16 showed 94.6% of individual investors were recording losses, with an average purchase price of 448,441 won compared to the closing price of 184,100 won on that date.