On the 24th, Samsung Biologics, which was relisted after a spin-off, plunged in early trading. Samsung Bioepis Holdings, newly listed the same day, is also falling.
As of 10:08 a.m., Samsung Biologics was trading on the Korea Exchange at 1,694,000 won, down 103,000 won (5.73%) from the opening price. However, it was up 473,000 won (38.73%) from 1,221,000 won just before the trading halt. Samsung Biologics had its trading suspended starting on the 30th for the upcoming spin-off.
At the same time, Samsung Bioepis Holdings, which opened at 611,000 won, was at 497,000 won, down 114,000 won (18.66%).
Previously, in May, Samsung Biologics was split through a spin-off into a surviving company, Samsung Biologics, which handles contract development and manufacturing (CDMO) of pharmaceuticals, and a newly established company, Samsung Bioepis Holdings, in charge of investment and subsidiary management.
The day's share moves are seen as a decline caused by short-term supply-demand instability as the values of the parent and the new entity are reassessed.
However, the securities industry projected that earnings will grow as conflicts of interest are resolved after the split.
Jeong I-su, an analyst at IBK Securities, said, "By separating the CDMO and biosimilar businesses, conflicts of interest are resolved, giving Samsung Biologics opportunities to expand new orders, while Samsung Bioepis Holdings can look forward to independent new drug development results," adding, "The spin-off will be a rare case of enhancing shareholder value."