KOSDAQ is falling on the 21st on shock from Alteogen. In particular, the bio sector that leads KOSDAQ took a direct hit.
As of 11:48 a.m. that day, the KOSDAQ index was down 4.22% (41.24 points) from the previous day at 935.13.
The impact of Alteogen, the KOSDAQ bellwether, is seen as significant. At the same time, Alteogen was down 23.08% (111,000 won) from the previous day to 370,000 won.
With the KRX 300 Healthcare Index and the KRX Healthcare Index both down more than 7% from the previous day, the KRX Bio TOP 10 Index is also showing a decline in the 6% range.
Blue lights flashed across KOSDAQ, where bio stocks occupy the top ranks by market capitalization. ABL Bio is also down in the 12% range, and HLB, Sam Chun Dang Pharm, Kolon TissueGene, and LigaChem Biosciences are also falling together.
Static VIs (volatility interruption) were triggered one after another. Around 11:43, a static VI was triggered for Alteogen, and VIs were also triggered for bio-related stocks such as MedPacto, D&D Pharmatech, Peptron, LigaChem Biosciences, and ABL Bio.
This is seen as investors unloading shares in disappointment after the size of Alteogen's large technology transfer deal turned out smaller than the market had expected.
Alteogen's share price surged recently after remarks made at the JP Morgan Healthcare Conference (JPMHC). At the time, President Jeon Tae-young of Alteogen said, "We plan to announce a technology transfer for ALT-B4 as early as next week," and noted, "It is expected to be similar in size to the previous transfer." Considering past technology transfer cases, the market expected the deal size to reach the trillions of won.
However, the previous day Alteogen disclosed that it had signed a deal totaling 410 billion won with Tesaro, a U.S. GSK subsidiary, including 29.5 billion won in upfront payment and 390.5 billion won in milestones. The deal size fell short of the initially expected trillions of won.
Also, through the contents of Merck's third-quarter report, the royalty rate Alteogen will receive from Keytruda SC sales was disclosed, and it turned out to be only 2%. This also fell short of market expectations.