Chong Kun Dang’s stock price plunges due to news of the disapproval of COVID-19 treatment

Chong Kun Dang’s stock price plunges due to news of the disapproval of COVID-19 treatment

by

A view of the Chong Kun Dang office building. [사진 = 연합뉴스]

picture explanationA view of the Chong Kun Dang office building. [사진 = 연합뉴스]

Chong Kun Dang’s stock price fell sharply on the 18th in the stock market as a result of expert advice that Chong Kun Dang’s COVID-19 treatment, Napa Beltan, had not proven its therapeutic effect.

According to the Korea Exchange, the stock price of Chong Kun Dang on the day fell 20.26% from the previous day. Chong Kun Dang Bio and Chong Kun Dang Holdings also closed down -23.48% and -12.66%, respectively. Kyongsang Pharmaceutical, which Chong Kun Dang Holdings owns 43.41%, also fell 19.88% on the same day. Chong Kun Dang’s share price declined on this day because expectations for the launch of a COVID-19 treatment declined.

Earlier, the results of expert consultation that Chong Kun Dang’s COVID-19 treatment’Napa Beltan’ had not proven the therapeutic effect had an impact. The Ministry of Food and Drug Safety held a meeting the day before and concluded that it was not appropriate to approve Napabeltan as a treatment for Corona 19 based on the results of phase 2 clinical trials submitted by Chong Kun Dang. The verification advisory group, an expert advisory meeting, commented that the results of phase 2 clinical trials alone are not sufficient to admit the therapeutic effect of this drug, and that additional clinical trials are needed.

In this regard, Chong Kun Dang said through the public announcement on the day that “there is no official notification or receipt of an official letter,” and “Phase 3 clinical trials of Napaveltan, a treatment for Corona 19, will proceed as planned.”

Chong Kun Dang said it was tentatively counted last year with sales of 1.3 trillion won and operating profit of 123.9 billion won. According to F&Guide on the day, brokerage firms expect Chong Kun Dang’s earnings forecast for this year to reach KRW 1.430.7 trillion in sales and KRW 124.7 billion in operating profit. Sales are expected to increase by 10% compared to the previous year and operating profit is expected to increase by about 1%.

[김정범 기자]
[ⓒ 매일경제 & mk.co.kr, 무단전재 및 재배포 금지]

Source