Sam Chun Dang Pharm, the leading KOSDAQ stock, said on the 31st that it will file a complaint for defamation and other charges over allegations raised by a blogger, as the stock fell sharply, ending at the lower limit (the bottom of the daily price band).
That day, Sam Chun Dang Pharm posted on its website, saying, "A particular blogger is in the midst of stock price manipulation and is confusing the market with a baseless post saying 'operation stock, blatant stock price manipulation,'" and noted, "The company is letting you know that it will file a complaint against this blogger for defamation, obstruction of business, and more."
It went on, "We strongly object to an iM (securities) research analyst distributing a post that says additional clinical trials are required for generic registration, and we have decided to take legal action if the post was uploaded without verifying the facts."
Earlier, on the 30th, the blogger raised suspicions under the headline "Request for investigation into the No. 1 stock price manipulation on KOSDAQ," saying Sam Chun Dang Pharm is suspected of stock price manipulation in cases such as a noninvasive blood glucose meter, a COVID-19 vaccine contract, an oral insulin contract, S-pass, and Eylea Vgenfli. The blogger currently has 604 subscribers.
The analyst mentioned by Sam Chun Dang Pharm is said to have explained the view in the course of an interview with a media outlet that day.
Sam Chun Dang Pharm's stock had surged on expectations for its oral insulin platform and generic development of GLP-1 class obesity and diabetes treatments. Its market capitalization, which was in the 5 trillion won range early this year, jumped to around 28 trillion won in three months, and the share price soared more than 400%, from 232,500 won to 1,184,000 won the previous day.
However, investor sentiment slumped sharply as the size of the contract announced the previous day fell short of market expectations. After the regular session closed on the 30th, Sam Chun Dang Pharm disclosed that it had signed an exclusive U.S. contract related to oral semaglutide (Rybelsus and Wegovy oral generics) on the condition of a milestone of about $100 million (about 153.4 billion won) and securing 90% of future sales revenue. The stock plunged to 829,000 won that day.
In response to criticism that the contract size is smaller than expected, Sam Chun Dang Pharm explained, "153.4 billion won is not the contract size but the milestone, and actual sales will be around 15 trillion won," adding, "Sam Chun Dang Pharm will receive 90% of the net profit from those sales."
Regarding Sam Chun Dang Pharm's response, some in the market say it may be an overreaction. The reasoning is that the blogger's subscriber base is around 600, and the iM Securities analyst also presented an opinion independently in the sector the analyst covers.
An official at iM Securities said, "It's not that a specific report was published; the analyst explained the analyst's own view. If legal action and other issues arise from the company in the future, we can review whether to respond."