Share price trend of SCD PHARM. (Source: MP Doctor)
◇Emperor Stock Falls…Market Cap Gap Narrows Sharply
SCD PHARM closed at 829,000won down 29.98%, hitting the daily limit after a sharp early session drop. The plunge pushed the stock out of the “emperor stock” club and briefly cost it the top KOSDAQ market cap spot.
Its market capitalization shrank by 8.33 trillion won in a single day to 19.45 trillion won, with the gap versus No.2 EcoPro narrowing sharply to about 500 billion won.
The sell-off was widely attributed to a blog post alleging issues with the company’s disclosures and contract structures, including past revisions to major deals and questions over recent obesity drug licensing terms. Concerns also extended to platform validation, pipeline feasibility and limited analyst coverage.
An iM Securities analyst added that additional clinical trials may be required for oral GLP-1 generics and questioned both the contract size and the 9:1 profit-sharing structure as atypical.
SCD PHARM issued three statements in a single day, vowing legal action against the blogger and disputing the analyst’s claims. It also highlighted a U.S. licensing deal that includes a “binding” 10 year revenue forecast of around 15 trillion won.
CEO Jeon In seok said the allegations would soon be proven false and pledged to demonstrate value through upcoming global deals and financial performance.
However some investors viewed the response as excessive saying legal threats undermined credibility rather than restoring confidence.
Meanwhile Optus Pharmaceutical, SCD PHARM’s subsidiary also hit the daily limit falling 29.96%.
The sell off spread across the pharmaceutical and biotech sectors as SCD PHARM plunged to the daily limit dragging down peer stocks.
Among KOSPI listed firms, Bukwang Pharm (-19.51%), Samyang Biopharmaceuticals (-15.84%), and KYONGBO PHARMACEUTICAL (-14.76%) posted double digit losses. On the KOSDAQ alongside SCD PHARM and Optus Pharmaceutica stocks such as △Rznomics (-16.27%) △IMBiologics(-15.83%) △ToolGen(-15.28%) △STCube(-13.58%) △AbClon (-12.09%) △MEZOO(-12.06%) △S-Biomedics(-11.69%) △Kanaph Therapeutics(-11.46%) △Genome&Company(-10.34%) also declined broadly.
◇Orum Slides 16% in After-Hours on Insider Sale
Orum Therapeutics, Inc. (Orum Therapeutics) fell sharply in after-hours trading following news of an insider share sale. The stock closed at W86,000 in regular trading, down 9.38%, and extended losses to W79,200 in after-hours, marking a 16.54% decline.
The company disclosed after market close that Peter Unnam Park, a non-executive director, sold 39,000 shares. Park played a key role in the company’s growth after joining as Chief Scientific Officer (CSO) in 2019. He stepped down from the CSO role in April 2023 and currently serves as CEO of Tesseract Medicine, while remaining on Orum’s board as a non-executive director.
Some market participants viewed the sell-off as excessive. Of roughly 260,000 stock options exercised, Park sold only 39,000 shares.
An industry source said, “Considering the remaining stock options held by Peter Park, the decline appears overdone,” but added, “Selling shares ahead of the shareholders’ meeting likely amplified investor disappointment.”
◇GEMVAX Slides on Lawsuit Loss Despite Limited Financial Impact
Separately GemVax & KAEL Co., Ltd. (GemVax) fell sharply after partially losing its second appeal in a damages lawsuit filed by Bioville.
Recent share price trend of GemVax (Source: MP Doctor)
GemVax shares dropped 7,800won (18.68%) to close at 33,950won following disclosure that it would pay 17.5 billion won in damages. The company said the financial impact would be limited, as it had already deposited 29.5 billion won in escrow in its 2024 financial statements.
A company official said, “We completed the 29.5 billion won deposit after the first trial ruling so the financial impact will be minimal.”
After market close, GemVax said it would appeal to the Supreme Court, seeking to overturn the unfavorable portion of the ruling and remand the case to the Seoul High Court.
