Shares of Samsung Biologics Co. surged on Dec. 11, making a sharp rebound to compensate for the drop prior to a 19-day trading suspension at a stroke.
Korea Exchange decided on Dec. 10 to keep Samsung BioLogics listed, despite the financial regulator’s punishment against the company for its accounting malpractices.
The company’s technology transfer contract signed during the period of the trading halt fueled the sharp gain on Dec. 11. However, stock analysts are divided over the company’s outlook. Some are bullish about the company based on a long term perspective while others are more cautious as there are still litigation risks. They also note that competition in the global biosimilar market is intensifying.
The price of Samsung Biologics shares jumped 17.79 percent, or 59,500 won (US$52.63) to close at 394,000 won (US$348.52) on the main KOSPI market on Dec. 11. The company’s market cap also increased to 26.07 trillion won (US$23.06 billion), climbing up four spots to the fifth on the KOSPI market.
The sharp gains came as a relief to the more than 80,000 retail investors. Individual investors net purchased 140 billion won (US$123.84 million) worth of Samsung BioLogics shares for five trading days from Nov. 8 to 14 before the trading suspension. They also made a net purchase of over 90 billion won (US$79.61 million) on Dec. 11. Foreign investors sold more than 80 billion won (US$70.77 million) of Samsung Biologics shares.
Although Samsung Biologics has resumed trading, there are mixed opinions on the company’s outlook. Some even say that the target stock price will plunge from 600,000 won (US$530.74) to 400,000 won (US$353.83) as the biosimilar market is getting more competitive.