DAISHIN SECURITIES analyzed on the 28th that the management vacancy due to the change in leadership at Oscotec would be limited. As a result, it maintained a buy investment opinion and a target stock price of 59,000 won. Oscotec's closing price the previous day was 31,200 won.
Earlier, at the Oscotec's regular shareholders' meeting held on the 27th, CEO Kim Jung-geun was dismissed. Minority shareholders opposed Oscotec's efforts to pursue the listing of its subsidiary Genosco and cast more than half of the votes against the reappointment of CEO Kim. At the meeting, 60.68% (23,212,79 shares) of the voting shares participated, among which 40.52% opposed the agenda, resulting in its rejection.
As a result, with CEO Kim's reappointment proposal being rejected, his term will end on the 28th. Lee Hee-young, a researcher at DAISHIN SECURITIES, noted, "Although CEO Kim's reappointment proposal was rejected, it is expected that co-CEO Yoon Tae-young will take over management alone, and no official management vacancy will occur."
Since his appointment as co-CEO of Oscotec in 2020, Yoon has overseen new drug research and development. The researcher stated, "Since co-CEO Yoon has been in charge of new drug research and development, the core pipeline development strategy of Oscotec is likely to maintain consistency," and added, "In the short term, there is expected to be no significant confusion in company management." Additionally, it was mentioned that positive clinical results for the core pipeline Lazcluz are continually being reported, and global commercialization is proceeding as planned.
Concerns regarding the listing of the subsidiary Genosco, which minority shareholders are most opposed to, have largely been reflected in the stock price, according to the researcher. He explained, "Subsequent pipeline clinicals are also sailing smoothly, and Oscotec's medium- to long-term growth momentum remains valid," adding that if shareholder-friendly decisions are strengthened as a result of this incident, it could lead to a re-rating of the stock price.
He added, "Since the rejection of this CEO appointment proposal stemmed from minority shareholders' opposition to the subsidiary's listing, the direction of Genosco's listing in the future is likely to significantly influence the stock price movement."