Market cap of ‘1 trillion club’ pharmaceutical·bio doubled… Preparation for large fish class IPO sortie

Input 2021.01.04 16:45

33 pharmaceutical and bio companies with a market cap of over 1 trillion… 14 places increase compared to the previous year
Samsung Biologics, market cap of 54,652.3 billion won… 5th listed company
Shinpoong Pharmaceutical, Alteogen, Daewoong, etc.

Last year, among domestic pharmaceutical and bio-listed companies, 33 companies with a market capitalization of over 1 trillion won were counted. This is 14 more places than the previous year, and it can be interpreted as taking the new coronavirus infection (Corona 19) crisis as an opportunity. This year too, as large-scale companies such as SK Bioscience are scheduled to go public for IPOs in the continuation of Corona 19, the number of pharmaceutical and bio companies with a market cap of over KRW 1 trillion is expected to increase. However, some point out that it is necessary to cover the stone with a temporary bubble caused by Corona 19.

According to F&Guide, a financial information company on the 4th, at the end of last year, 33 companies with a market cap of over 1 trillion won were found among domestic pharmaceutical and bio-listed companies. This is an increase of 14 locations from the previous year (19 locations), nearly doubled.

Among the domestic pharmaceutical and bio companies, Samsung Biologics has the largest market cap. As of the end of last year, it recorded 54,652.3 billion won. Even if it expands to all listed companies, it is ranked 5th. Celltrion, Celltrion Healthcare, SK Biopharm, and Celltrion Pharmaceutical were ranked in the top 5 in the market cap of pharmaceutical and biotech companies.

Most of the domestic pharmaceutical and bio companies surged on the news of the development of COVID-19 treatments and diagnostic kits. Shinpoong Pharmaceutical, Alteogen, Daewoong, Baxel Bio, and ST Pharm, which were newly listed in the market cap of 1 trillion companies at the end of last year, are representative. At the end of last year, Shinpoong Pharmaceutical’s market cap was 6,570 trillion won, up 17 times from the end of last year (383.6 billion won). During the same period, the stock price jumped from 7240 won to 124,000 won. This is the No. 1 share price increase rate in the securities market. Shinpoong Pharm’s stock price rose vertically after it was known that it was conducting a clinical trial evaluating the possibility of treating Corona 19 with the malaria treatment Piramax.

The same goes for companies with the existing market cap. Celltrion had a great effect on COVID-19 treatment. Celltrion’s market cap at the end of last year was 49,424.9 billion won, a significant increase from the previous year (24.38 trillion won). During the same period, Celltrion Healthcare reached 25,2345 billion won, more than tripled from 8.5.3 billion won at the end of 2019. Celltrion Pharmaceutical also increased from 1,4245 billion won to 8,7151 billion won.

In the KOSDAQ market, the strength of pharmaceutical and bio companies was more prominent. Among the top 10 companies in the market cap at the end of last year, half were pharmaceutical and bio companies. At the end of 2019, the number increased by two from just three. In particular, all of the first to fifth places were pharmaceutical and bio companies.

This year, the number of pharmaceutical and bio companies with a market cap of over 1 trillion won is expected to increase further. Large language companies such as SK Bioscience and HK Innoen are in the process of listing. In particular, SK Bioscience is attracting attention by developing its own Corona 19 vaccine as well as consignment production of Corona 19 by global pharmaceutical companies such as AstraZeneca.

However, some point out that some pharmaceutical and bio companies are taking advantage of the Corona 19 incident to launch unfounded stocks. A professor of infectious medicine at a university hospital said, “Some companies are announcing that they are going to develop COVID-19 treatments and vaccines, but they are not releasing specific details while revealing only those that are beneficial to them.” An official from a domestic pharmaceutical company also said, “Pharmaceutical companies are also knowing that they have started cracking down on their employees internally,” he said.