As the KOSPI topped 5,000 for the first time ever, sending a warm breeze through Korea's stock market, the pharmaceutical and biotech sector is seeing both a sense of neglect and hopes for a rebound.
According to the Korea Exchange (KRX) on the 26th, the KOSPI's gain this year (2nd–21st) was 104.62%. By sector, transport equipment and parts rose 34.96%, electricity and gas gained 33.7%, and electrical and electronics climbed 21.67%, while medical and precision instruments advanced 7.7% and pharmaceuticals and biotech rose only 5.73%.
In particular, around the "JP Morgan Healthcare Conference (JPMHC 2026)"—the world's largest pharma and biotech investor event held in the United States from the 12th to the 16th (local time)—optimism over catalysts, as well as bearish speculation and rumors, spread, sending pharma and biotech shares on a roller coaster.
Some say investor sentiment weakened further as volatility in pharma and biotech stocks increased compared with the leading sectors in an uptrend. Industry officials said, "When a blue light (a signal for a drop) comes on, we are flooded with protest calls from some shareholders asking corporations for aggressive defense and responses."
Corporations are responding by strengthening communication channels such as Telegram and YouTube operated by the company, along with shareholder letters starting with the title "Notice to shareholders," explanations to counter rumors, and clarification disclosures.
◇ KOSDAQ bellwether Alteogen swings
At the center of January's biotech volatility was KOSDAQ bellwether Alteogen. The company's share price soared during trading on the 16th to a high of 529,000 won, up 27.5% from the previous day, then fell for four straight sessions from the 19th to close at 369,500 won on the 22nd.
During JPMHC, shares rose sharply on expectations for technology out-licensing, but after the company said on the 20th that it had signed an exclusive license agreement with Tesaro Inc., a subsidiary of GSK plc, to develop and commercialize a subcutaneous (SC) formulation of the immunotherapy Jemperli, the stock instead plunged.
Technology out-licensing is typically a positive in the market, but the drop reflected assessments in some corners that the deal size fell short of expectations. The deal totals up to 420 billion won, including an upfront payment of $20 million (about 29.5 billion won).
On top of that, as it became known that the royalty rate—part of the terms for the technology fee paid by Merck to Alteogen for Keytruda's subcutaneous (SC) formulation—was 2%, lower than the market's expected 4%–5%, the stock nosedived.
Alteogen issued statements on its website for two straight days to contain the fallout. The company emphasized, "We can receive royalties for up to 18 years through early 2043, when Alteogen's technology patents remain valid." It also said, "We currently have three commercialized products, and we are pursuing business development with a goal of securing more than six additional commercialized products by 2030," adding, "Led by our platform technology, our fundamentals are solid."
◇ Shares sway on rumors… corporations go all-out to put out fires
As bellwether Alteogen wavered, other major biotech stocks also fell in tandem as multiple rumors and interpretations intertwined. Heo Hye-min, an analyst at Kiwoom Securities, said, "The sharp drop in Alteogen's share price dragged down overall investor sentiment for biotech," adding, "Falling expectations for monetizing technology transfer led to overselling."
LigaChem Biosciences saw its share price, which was 185,800 won on the 8th, swing sharply day after day, closing at 148,000 won on the 21st. Regarding this volatility, the company said, "It is an overall supply-demand effect across the biotech sector after the JPMHC event," and noted, "There are no operational setbacks." It also emphasized that multiple technology transfer discussions are under way.
Hanmi Pharmaceutical's shares fluctuated as speculation over "development setbacks" spread in the market after MSD's presentation at JPMHC did not mention "efinopegdutide," a treatment for metabolic dysfunction-associated steatohepatitis (MASH). Efinopegdutide is a drug that Hanmi Pharmaceutical out-licensed to MSD in 2020 in a deal worth up to $870 million.
Hanmi Pharmaceutical said, "MSD's latest presentation focused on pipelines with results due in 2026 and 2027," adding, "The rumor of development setbacks is groundless."
GI Innovation also saw its share price swing on market rumors that it was pushing a paid-in capital increase. On its website, the company said, "The market rumor of a paid-in capital increase is not true at all," and disclosed the size of its cash-like assets and plans for future milestone inflows.
By contrast, G2GBIO, which has technology that extends the dosing interval of obesity treatments to once a month, rose on bullish rumors, climbing from 70,800 won on the 13th to 87,600 won on the 19th.
An interview with an executive at Novo Nordisk, developer of the obesity drug Wegovy, conducted on site at JPMHC, was reported, and some in the domestic market stitched parts of the interview together to make it seem as if G2GBIO had positives such as "technology transfer talks" and "a plant due diligence under way," spreading so-called "jirashi" (an information sheet of unclear credibility). As these rumors spread, the company ultimately posted a clarification saying, "It is not true that technology transfer talks and a plant due diligence mentioned in some quarters are under way."
An industry official said, "In the past, there was a perception that silence was best, but now, if there is no immediate fact-checking and explanation, distrust grows," adding, "Strategies for communicating with shareholders and responding quickly to false rumors are becoming more important."
◇ Brokerages: "Mid- to long-term growth remains intact"
On the 23rd, a sense emerged in part that the recent decline had been excessive, and biotech stocks broadly rebounded.
Kwon Hae-sun, an analyst at Eugene Investment & Securities, said of the Alteogen-driven slump in biotech stocks, "Concerns about the growth potential of Korea's biotech and pharmaceutical industry were excessively reflected," adding, "This issue is less about the industry's R&D capabilities or mid- to long-term growth than it is a revaluation process of Alteogen's corporate value, which had overly priced in expectations first."
Assessments are also mounting that the mid- to long-term growth of major domestic pharmaceutical and biotech corporations remains intact. Industry and investment experts say structural changes are continuing, driven by experience collaborating with global big pharma, an expanding pipeline entering clinical stages, and rising recognition of technology.
Heo Hye-min of Kiwoom Securities said, "With more K-bio corporations delivering tangible results on the global stage and gaining higher recognition for their technologies, a dark age like in the past will not come."
There is also a view that investment criteria have become more exacting. Experts analyze that the market has entered a phase where not just sealing a technology out-licensing deal, but the advantages in deal structure, the realism of milestones, and the accumulation of clinical data will determine the share prices of domestic biotech corporations.
An industry official said, "When market liquidity was abundant, share prices surged on technology out-licensing or contract manufacturing orders alone, but now investors react more to concrete figures, timelines, and verifiable data," adding, "The sorting of the wheat from the chaff among pharma and biotech stocks is intensifying."