Shares of G2GBIO, which develops and sells a platform that extends the dosing period of obesity treatments, rode a roller coaster on the 16th. Conflicting chatter about an imminent technology transfer and the company's official denial added to market confusion.
That day, G2GBIO closed at 82,800 won, up 5,000 won (6.43%) from the previous trading day. Opening at 77,800 won, the stock at one point surged 16.2% to 90,400 won during the session as rumors spread of a "corporate due diligence for a technology transfer by a global big pharma."
G2GBIO is co-developing with global pharmaceutical companies through its "InnoLAMP" platform, which extends the dosing interval of obesity treatments to once a month. Typically, corporate due diligence takes place immediately before a technology transfer. As a result, news of the due diligence was interpreted as a signal that a deal was entering full swing, drawing in investment funds.
But the stock slumped again. It came right after the company posted a notice saying, "It is not true that discussions on a technology transfer and a plant due diligence with the global co-development partner currently mentioned in some quarters are underway."
When the company conveyed that the rumor was "groundless," the market took it as a signal that even the co-development for a technology transfer had fallen through. That led to panic selling, pushing the stock down to 72,500 won, a 19% plunge from the intraday high.
However, the stock soon rebounded and stabilized. As it became clear that the notice merely denied a "specific rumor that due diligence was underway right now," and that the previously pursued co-development premised on a technology transfer remained intact, bargain hunting flowed in.