Sam Chun Dang Pharm has surged to become the new heavyweight of Korea’s Kosdaq, as investor enthusiasm builds around its next-generation drug pipeline, including oral insulin and a weight-loss pill.
Shares closed at 1.16 million won ($770) on Thursday, up 3.86 percent that day, pushing its market capitalization to 27.16 trillion won. The stock earlier hit a record 1.19 million won, after closing above the 1 million won mark the previous day — the first such milestone for a Kosdaq-listed company since EcoPro in 2023.
The rally has been explosive. The stock has more than quadrupled this year from 244,500 won on Jan. 2, driven largely by expectations for its drug pipeline.
Momentum accelerated in January when the company announced a partnership with Daiichi Sankyo to develop and commercialize a weight-loss pill — a generic version of oral semaglutide, the key ingredient in Wegovy.
Further upside came from its push into oral insulin. Earlier this month, the company said it had applied to the European Medicines Agency to begin Phase 1 and 2 clinical trials of its oral insulin candidate, SCD0503.
“If successful, it would mark a major step toward the world’s first oral insulin and could be a game changer,” Korea Investment & Securities analyst Wi Hae-joo said.
The rally has held firm even after CEO Chun In-seok disclosed plans to sell a 1.13 percent stake, lowering his holding to 2.28 percent. In a letter to shareholders, Chun said the sale was to fund tax payments and did not reflect any change in management stance, adding that “significant news that could reshape the company’s standing” is expected within days.
Still, concerns are mounting over valuation. Despite a market cap exceeding 27 trillion won, the company posted relatively modest results last year, with revenue of 231.8 billion won and operating profit of 8.5 billion won.
Coverage also remains limited. Korea Investment & Securities is the only domestic brokerage to have published reports on the company over the past year, and has yet to provide a target price.
By Im Eun-byel (silverstar@heraldcorp.com)
