[THE INVESTOR] Korean pharmaceutical and bio companies have seen their share prices surge about 20 percent recently on eased concerns over accounting regulations and other positive factors, data showed on Sept. 18.

According to the data from the Korea Exchange, its health care index, which is comprised of 75 major bio shares traded on the main KOSPI and secondary KOSDAQ markets, closed at 4,356.81 on Sept. 17, up 0.66 percent from the previous session.

The index, which includes pharmaceutical giant Celltrion, was up a whopping 18.7 percent from a recent low of 3,672.04 at the end of July.

The combined market value of the companies stood at 167 trillion won (US$148 billion), up 26 trillion won from end-July.

Market watchers mainly attributed the rally to eased uncertainty over their accounting rules regarding research and development expenses, which spooked investors.

The Financial Supervisory Service has been looking into pharmaceuticals firms’ practice of regarding their R&D spending as assets, not expenses.

The financial watchdog recently said it will come up with a set of accounting standards concerning the issue rather than slap heavy punishments on companies subject to its investigation.

Also at work were favorable developments in Samsung BioLogics and some companies, including supply and contract manufacturing deals, they added.

Some analysts, however, warned that investors should pay close attention to companies that have risen excessively despite a lack of particular positive leads.

By Song Seung-hyun and newswires (ssh@heraldcorp.com)