Pharmaceutical manufacturing corporations Huons jumped more than 13% in early trading on the 19th. The rise appears to be driven by buying after news of a merger with a subsidiary.
As of 9:58 a.m., Huons was trading at 36,650 won on the KOSDAQ market, up 4,250 won (13.12%) from the previous session.
Huons said the previous day that its board approved a contract to absorb and merge Huons Lab, a subsidiary of holding company Huons Global. The surviving company is Huons, and the dissolving company is Huons Lab. Huons Lab develops biopharmaceuticals and peptide drugs.
Huons plans to complete the merger in mid-Aug. after an extraordinary shareholders meeting in July.
Regarding the purpose of the merger, Huons said it is "to resolve downward pressure on profitability due to a lack of a new drug pipeline and the government's drug pricing system reform, and to push for building a biopharmaceutical value chain and strengthening research and development (R&D) capabilities."
Earlier, on the 22nd on the previous month, Huons also decided on a small-scale merger to absorb Huons BioPharma, a 100% subsidiary, to improve management efficiency.