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Korean bio shares tumble on concerns over drug trial failures

Welfare/Medicine 11:13 August 31, 2019

SEOUL, Aug. 31 (Yonhap) -- Bio shares on the Korean stock market tumbled this year as investor confidence was hurt by a series of scandals involving major drugmakers, data showed Saturday.

The combined market capitalization of 43 pharmaceutical and bio companies listed on the main bourse, the KOSPI, stood at 81.3 trillion won (US$67.2 billion) as of Friday, wiping out 20.5 trillion won this year, according to operator Korea Exchange (KRX).

The bio sector index plunged 26.2 percent over the period, the KRX said.

The nation's bio industry has been hit by a series of drug trial failures by major companies, including Kolon TissueGene and SillaJen.

The KRX said Monday it has tentatively decided to delist Kolon TissueGene Inc., an affiliate of Kolon Life Science, from the local stock market as it submitted a false document when it was listed two years ago.

Kolon TissueGene, a U.S.-based affiliate of Kolon Life Science, was listed on the secondary market in 2017. The trading of Kolon TissueGene has been suspended since late May after the government revoked its permit for the gene therapy drug Invossa for mislabeling and false reporting of an ingredient.

Another drugmaker, SillaJen, is also under criticism after some company executives dumped its shares after its oncolytic viral drug failed clinical tests, the results of which were publicly disclosed later.

Korean bio shares tumble on concerns over drug trial failures - 1


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