KOSDAQ-listed bio firm to go under review for unfaithful disclosure

▲ The logo of Sam Chun Dang Pharm Co. (Yonhap)

bio company-disclosure violations

KOSDAQ-listed bio firm to go under review for unfaithful disclosure

SEOUL, April 16 (Yonhap) -- South Korea's main bourse operator said Thursday it is set to review a bio firm, whose stocks rallied recently amid hype over its weight-loss drugs and oral insulin, to determine whether the firm violated disclosure regulations.

The Korea Exchange (KRX) said it has referred Sam Chun Dang Pharm Co., a local drugmaker, to its listing and disclosure committee for alleged failure to meet disclosure obligations.

A final decision on whether the company violated disclosure regulations will be made next Thursday, according to the KRX.

Stock prices of the pharmaceutical company rallied recently, as investor enthusiasm built around its next-generation drug pipeline, including oral insulin and a weight-loss drug.

The company's share price had once surpassed the 1 million-won (US$678.3) mark, becoming the first company since 2023 to reach the milestone on the secondary, venture-heavy KOSDAQ market, according to the bourse operator.

KRX, however, issued a prior notice late last month that the company may be designated as a violator of the disclosure regulation due to its failure to make fair disclosures regarding forecasts or projections on business performances, including operating profits.

The company is suspected of failing, on multiple occasions, to provide full information on business deals it claimed to have made.

Shares of the company were trading at 528,000 won as of 10:30 a.m. Wednesday, down 5.05 percent from the previous session's close.

Sam Chun Dang Pharm is currently the fourth largest in terms of market capitalization on the KOSDAQ market.

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