PharmaResearch shares plunged in early trading on the 5th. The sell-off appeared after fourth-quarter results last year fell short of market expectations.
As of 9:29 a.m. that day, PharmaResearch stock was trading at 370,000 won on the KOSDAQ market, down 15.81% (69,500 won) from the previous day.
PharmaResearch said on the 4th that it posted fourth-quarter revenue of 142.8 billion won and operating profit of 51.8 billion won last year. Those figures missed the consensus (the securities industry's average estimate) by 8% and 20%, respectively.
Researcher Cho Eun-ae at LS Securities said, "As the revenue recognition accounting standard for the medical device division changed from a gross recognition method, which included existing marketing support funds, to a net recognition method, about 5 billion won in revenue was deducted in the fourth quarter," and added, "Even taking into account the impact of the accounting standard change, the medical device division's revenue came in below market expectations." Revenue for the medical device division was 83.2 billion won.