Sam Chun Dang Pharm, which rose to No. 1 on the KOSDAQ by market cap, jumped into the 12% range in the morning on the 25th, returning to "emperor stock" status (100,000 won or more per share).
The view is that expectations among investors grew after Chief Executive Jeon In-seok hinted at major news in a letter to shareholders.
According to the Financial Supervisory Service's electronic disclosure system, Chief Executive Jeon In-sik disclosed the previous day that Jeon plans to dispose of 265,700 common shares held via after-hours trading. The transaction period is about 30 days from Apr. 23 to May 22, and considering the expected disposal price of 941,000 won, the transaction size is about 250 billion won.
The company said the sale is to secure funds to pay taxes. In the letter to shareholders, Jeon said, "The sale is entirely a measure to pay taxes, including gift tax," adding, "It is for personal purposes only and is unrelated to the company's management conditions or fundamentals."
Some also said the statement Jeon released stirred market investor sentiment.
In the letter, Jeon said, "Sam Chun Dang Pharm's quantum jump has already begun," adding, "We are passing the most important inflection point in Sam Chun Dang Pharm's history." Jeon also said, "Talks with global big pharma have entered the stage of bearing fruit," and noted, "Within days we will be able to deliver major news that will change the company's constitution." Among shareholders, this led to speculation about the possibility of technology transfer.
Sam Chun Dang Pharm is currently expanding its pipeline to include oral insulin and obesity treatments, based on the commercialization of an Eylea biosimilar (biosimilar for macular degeneration).
It is developing insulin in an oral form, which would be the first in the world if successful. The company's "S-Pass" platform encapsulates insulin or protein drugs with special materials to protect them from gastric acid and, rather than forcing them through the intestinal wall, temporarily opens the gaps between cells to enable absorption.
If this technology delivers successful results in clinical trials, diabetes patients would be able to take a simple pill instead of injecting insulin into the thigh or abdomen. The company filed a clinical phase 1/2 trial plan (CTA) in Europe on the 19th. Clinical approval has not yet been granted.
Some raised overhang concerns (potential sell volume) given that Jeon is pursuing an equity sale immediately after ascending to No. 1 by market cap. There is also a view that about 250 billion won worth of shares coming to market could weigh on supply-demand.