On the 1st, Sam Chun Dang Pharm fell 4% in early trading after closing at the lower limit (the daily price limit floor) the previous day. The shortfall in contract size versus market expectations, the controlling shareholder's plan to sell a large block of shares, and friction with a blogger claiming "stock manipulation" appear to have collectively dampened investor sentiment.
As of 9:24 a.m., on the KOSDAQ market, Sam Chun Dang Pharm was trading at 790,000 won, down 39,000 won (4.7%) from the previous trading day.
Sam Chun Dang Pharm shares surged more than 400% from 232,500 won at the start of the year to 1,184,000 won on the 30th of last month, entering so-called "emperor stock" territory (share price above 1,000,000 won). But they plunged to close at the lower limit of 829,000 won the previous day, and its market capitalization ranking fell to fourth on the KOSDAQ.
The contract size falling short of market expectations appears to have weighed on the share price. On the 30th, after the regular session closed, Sam Chun Dang Pharm disclosed it had signed an exclusive U.S. contract related to oral semaglutide (Rybelsus·Wegovy oral generic), securing about $100 million (about 153.4 billion won) in milestones and 90% of future sales revenue. Sam Chun Dang Pharm shares plunged to 829,000 won that day.
In response to criticism that the contract size was smaller than expected, Sam Chun Dang Pharm said, "150 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."
The recent controversy over "stock manipulation" also appears to have affected investor sentiment. Earlier, on the 30th, a blogger raised suspicions in a post titled "Request for investigation into KOSDAQ No. 1 stock manipulation," alleging that stock manipulation was suspected in cases involving Sam Chun Dang Pharm's noninvasive blood glucose meter, COVID-19 vaccine contract, oral insulin contract, S-pass, and Eylea Vgenfli, among others. The blogger currently has 604 subscribers.
Sam Chun Dang Pharm posted on its website, "A specific blogger claims ongoing stock manipulation and is confusing the market with baseless posts such as 'operator stock, blatant stock manipulation,'" adding, "The company will file a complaint against this blogger for defamation and obstruction of business."
Plans by the controlling shareholder to sell equity are also cited as a factor heightening investor caution. CEO Jeon In-seok disclosed plans to dispose of about 250 billion won worth of Sam Chun Dang Pharm equity via after-hours block transactions from the 23rd of this month to the 22nd of next month. Large-scale sales by controlling shareholders are often interpreted in the market as a signal of a share-price peak.
However, Jeon said, "I am selling shares for personal reasons such as the size of taxes and the payment schedule," adding, "This is separate from the company's fundamentals."
Meanwhile, the Korea Exchange (KRX) designated Sam Chun Dang Pharm as a short-selling overheated stock on the day. Accordingly, if the share price falls an additional 5% or more, the short-selling ban period may be extended.