Researchers from the United Kingdom start global phase 3 of COVID-19 in Kenya from the 8th of this month
13 times in the past year, over 20% compared to the previous day
Shinpoong Pharm, “I have no position to convey in particular with the Piramax case”
With the unprecedented epidemic of Corona 19, interest in pharmaceuticals and bio stocks is hotter than ever. Among them, Shinpoong Pharmaceutical, which is evaluated as the’largest beneficiary of coronavirus’, is attracting attention from investors. This is because the news that’Piramax’, which is being developed as a treatment for Corona 19, is entering the global clinical phase 3 recently.
Over the past year, there has been great enthusiasm for pharmaceutical and bio stocks in the domestic stock market. According to data from the Korea Exchange, the KOSPI pharmaceutical index rose 92.6% (10,946.25 → 21,085.04) over the past year, and the KOSDAQ pharmaceutical index also rose 83.2% (7,662.52 → 10,040.39).
In particular, those who develop COVID-19 treatments or vaccines were classified as’corona theme stocks’ and received explosive attention, among which Shinpoong Pharmaceutical was the most’hot’. The company’s stock price, which was less than 10,000 won in March last year, soared close to 200,000 won in September, and the market cap also exceeded 10 trillion won.
In fact, according to the data released by NH Investment & Securities, among individual investors who opened a new stock account last year, Shinpoong Pharmaceutical was the most traded item among individual investors in their 20s and 30s, and the transaction amount was found to exceed about 3 trillion won.
In this situation, news that Shinpoong Pharm’s malaria treatment’Piramax’ will enter the global clinical phase 3 from the 8th, and the domestic stock market is in the shape of a flurry once again. For the past year, Shinpoong Pharmaceutical’s stock price has repeatedly fluctuated whenever news related to’Piramax’ comes out.
According to Clinical Trials (US clinical trial registration site) of the National Institutes of Health (NIH), researchers from Liverpool, UK, in Kenya and Burkina Faso, Africa, to confirm the therapeutic effect of Pyramax in patients with COVID-19. The award is scheduled to proceed. This clinical trial will start on the 8th (local time) and the target time for completion is July 31, 2023.
Accordingly, Farm News looked back on the trends of Shinpoong Pharmaceutical’s stock price in 2020.
It was around April that investors began to pay attention to Shinpoong Pharmaceutical. Shinpoong Pharmaceutical announced that pyronaridin and altesunate, the main components of the malaria treatment’Piramax,’ each showed an effect of suppressing the Corona 19 virus in vitro (in vitro experiments).
In particular, when the two components of pyronaridin and altesunate were used in combination, the virus titer inhibition rate recorded more than 99% after 24 hours, the persistence was extended to 48 hours, and the effect of reducing cytotoxicity was confirmed.
In response to the news, the company’s stock price rose 29.96% and 29.87%, respectively, from the previous trading day on April 3 and 6, and the stock price exceeded 20,000 won. However, on the 14th of the same month, -12.73% and -17.71% on the 16th fell down again to the 10,000 won mark.
In May, there was news that the Ministry of Food and Drug Safety had approved the domestic phase 2 clinical trial plan of Piramax’s COVID-19 treatment for mild and moderate patients. However, Shinpoong Pharm’s stock price at the time did not show a double-digit fluctuation rate except for a 10.95% increase on May 14, the day after the announcement of clinical approval.
It was from July, when the company’s stock price began to rise in earnest. Shinpoong Pharm’s stock price, which had moved sideways in the early half of 30,000 won, rose 22.22% compared to the previous day on July 7 to 37,950 won. After that, it rose to 123,000 won on July 23, showing a sharp rise. The stock price, which was less than 10,000 won in March alone, exceeded 100,000 won in half a year.
However, on July 24th and 27th, -14.63% and -30%, respectively, plunged and the company’s stock price fell to 73,000 won. During the month of July, the stock price rose more than 20% six times, and the number of times it fell more than -10% three times. It was a roller coaster market.
The background of this fluctuation in stock prices seems to be related to chloroquine and hydroxychloroquine, which were in the spotlight as treatments for Corona 19 at the time. The U.S. Food and Drug Administration (FDA) decided to cancel the approval of hydroxychloroquine, which had been approved for emergency use as a treatment for Corona 19, and this led to the expectation of Pyramax that influenced investor sentiment.
But it wasn’t the end here. Shinpoong Pharmaceutical, whose market cap and current market cap increased significantly due to anticipation for Piramax, was incorporated into the Morgan Stanley Capital International (MSCI) index in August, and foreign passive funds began to enter.
In addition, a phase 2 clinical trial conducted on 250 African patients infected with Corona 19 in South Africa from August has also become a foothold for the share price rise. In response to this news, Shinpoong Pharmaceutical’s stock price again exceeded 100,000 won in August, and the number of trading days with an increase of more than 10% was counted as 5 times.
Shinpoong Pharmaceutical’s stock price peaked in September.
The stock price of Shinpoong Pharm, which was in the 130,000 won range at the end of August, rose to 150,000 won in September. On September 18, it rose 29.84% (45,500 won↑) from the previous trading day to 198,000 won. Closed. The market cap also soared to 10.49 trillion won, showing a big gap with companies such as Yuhan Corporation, GC Green Cross, and Hanmi Pharmaceutical, which are the top companies in the pharmaceutical industry.
However, on the next trading day, Sept. 21, it fell slightly, followed by a drop of -14.21% on the 22nd, and the stock price fell to 166,000 won. After that, it continued downhill and fell to the 100,000 won level in November.
When Shinpoong Pharmaceutical’s stock price fell to 105,000 won on November 12, the uptrend began to continue again. The company’s stock price moved sideways in the 120,000 won range for the month of November and then rose again in December. On December 9, the company posted 191,000 won, exceeding the ‘200,000 won notice’.
However, the stock price did not exceed 200,000 won and continued to decline. Currently, it is recording 12,1500 won (as of January 6).
As a result of analyzing the stock price of Shinpoong Pharmaceutical based on data from the Korea Exchange, Palm News found that the company’s stock price rose more than 10% from the previous trading day for a total of 32 times, of which 20% or more’surged’ 13 times. Turned out to be. In addition, 15 trading days recorded a decline of more than -10%.
This is the background that the news of Pyramax’s global phase 3 clinical trial is expected to lead to a surge in stock prices again.
An investor who requested anonymity said, “Shinpoong Pharmaceutical’s share price return in 2020 was the highest ever.” In addition to the clinical news related to Piramax, the stock price was shaken when only news related to the Corona 19 vaccine or treatment was released. The news of this phase 3 clinical trial is also expected to have some effect.”
“However, it is true that the stock price has soared and then plunged frequently, and the number of times the Korea Exchange has designated it as an investment warning item several times,” he added. “We should avoid’don’t ask investment’ for speculation purposes.” .
On the other hand, Shinpoong Pharmaceutical’s officials said, “Currently, there is no particular matter to convey about the Piramax case” to the reporter’s question on Pyramax.
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