Bio pharm equities lose past glory on KOSDAQ

June 19, 2014 Leave a comment

Bio pharm equities lose past glory on KOSDAQ

Kim Jan-di

2014.06.13 11:24:25

South Korea’s bio-pharmaceutical stocks are not faring well unlike they did in the past. Most of the KOSDAQ’s bio-pharm equities that were among top-ranked stocks by market cap three years ago are no longer placed where they used to be. 
Celltrion is the sole bio-pharm stock that belongs to the KOSDAQ’s top 10 market cap stocks as of Friday. Companies in the bio-pharmaceutical sector, whose market cap once far exceeded one trillion won ($981.5 million), sharply slid from top ranks due to the combination of several factors such as demanding price to earnings ratios (PERs) and concerns over weaker-than-expected earnings.
Madipost once saw its market cap surge to the top five on the back of the craze for stem-cell related shares in late 2011, but its market cap fell to the 44th place. Gemvax and Seegene, which had made it to the top 10, fell to the 27th and 13th ranks respectively. With market cap surpassing one trillion won, these three companies used to be mentioned as flagship shares in the pharmaceutical and bioscience sector.
But they lost their reputation long ago because of poor earnings.
Medipost and Gemvax posted losses in the first quarter of this year, and Seegene’s weaker-than-expected earnings added to the disappointment.
Seegene’s consolidated operating profit jumped 15.2 percent year-on-year (yoy), but its separate earnings fell sharply short of the market expectation.

Filed under Macro Trends

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