The pharmaceutical and biotech industry is experiencing a severe downturn in investment sentiment due to factors such as declining trust post-COVID-19, high interest rates, global economic uncertainty, and political instability. However, some companies have achieved significant growth in market capitalization and stock prices by achieving success in new drug approvals, securing orders, and expanding globally.
A study by Daily Medy examined stock price trends from December 2019, just before the COVID-19 outbreak, to the end of 2024. The results showed that PharmiResearch, ST Pharm, Yuhan Corporation, Samil Pharmaceutical, and Hugel experienced the largest increases in market capitalization.
PharmiResearch recorded the highest growth rate, with its market capitalization increasing by 693% from 347.8 billion KRW on December 30, 2019, to 2.7587 trillion KRW on December 30, 2024. During the same period, its stock price surged by 621% from 36,400 KRW to 262,500 KRW. This surge was driven by the high growth of its main product, the skin booster "Rejuran," in overseas markets. In November 2023, PharmiResearch's exports reached a record high, and the company plans to enter the European market this year, following its successful expansion into Australia, Chile, Mexico, and Taiwan. Additionally, the company received a 200 billion KRW investment from CVC Capital, a European private equity firm, raising expectations for further growth.
Yuhan Corporation's market capitalization increased by 217% from 3.217 trillion KRW to 9.5849 trillion KRW during the same period. Its stock price also rose by 166% from 44,900 KRW on April 7, 2020, to 119,500 KRW on December 30, 2024. The company's stock price surge was mainly attributed to the U.S. Food and Drug Administration (FDA) approval of its anticancer drug "Leclaza" (lazertinib). In 2018, Yuhan Corporation licensed Leclaza to Johnson & Johnson, and last year, it received a milestone payment of 90 million USD after Leclaza was approved in the U.S. and Europe for combination therapy with Rybrevant. Johnson & Johnson is currently awaiting approval for the subcutaneous injection formulation of Rybrevant in the U.S. In 2025, Yuhan Corporation is expected to receive royalties based on last year's sales performance, and analysts predict that Leclaza's global sales could reach up to 3 billion USD.
ST Pharm's market capitalization increased from 555.9 billion KRW to 1.79 trillion KRW, and its stock price surged by 198% from 29,800 KRW to 88,900 KRW. ST Pharm has strengthened its position in the global market by excelling in the contract development and manufacturing (CDMO) of oligonucleotide drugs, the main raw material for RNA therapeutics. The company has secured several supply contracts with global pharmaceutical companies and biotech firms, and its stock price has been positively affected by the U.S. government's "Biosecurity Act," which restricts business with Chinese biotech companies, making ST Pharm a potential alternative supplier.
Samil Pharmaceutical's market capitalization increased by 108% from 136.8 billion KRW to 285.2 billion KRW. The company has seen steady growth in its new products, such as "Levakey" and "Afilivu," and has maintained stable sales of existing products, leading to improved performance and stock prices. Additionally, expectations that Samil Pharmaceutical's Vietnam CMO plant will benefit from the U.S. Biosecurity Act have boosted its stock price.
Hugel's market capitalization increased by 106% from 1.7179 trillion KRW to 3.5354 trillion KRW. The company's stock price has risen due to improved performance driven by increased exports of toxins and fillers, as well as the resolution of litigation risks with Medytox. Furthermore, Hugel's stock price has surged in anticipation of its entry into the U.S. market, the world's largest, after receiving FDA approval for its botulinum toxin product "Letibotulinum."
In conclusion, while the pharmaceutical and biotech industry is facing challenges due to various factors, companies that have achieved success in new drug approvals, secured orders, and expanded globally have been able to overcome these challenges and achieve significant growth in market capitalization and stock prices.
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