KOSDAQ-listed Biotech Firms Lose 4 Trill. Won in Market Cap This Year

The combined market cap of pharmaceutical and bio firms listed on the secondary KOSDAQ market shrunk more than 4 trillion won (US$3.39 billion) this year.

The market cap of pharmaceutical and biotech companies on the KOSDAQ market came to 28.90 trillion won (US$24.51 billion) as of the end of last month, down 4.10 trillion won (US$3.48 billion), or 12.3 percent, from the end of last year, according to the Kore Exchange (KRX) on July 14. The number of companies newly listed on the market increased by three from 83 to 86 over the same period, but the total market cap rather decreased.

The industry’s top-cap Medytox Inc. saw its valuation shrink 700 billion won (US$593.72 million) during the first six months of the year, while runner-up Celltrion Pharm Inc. shed 600 billion won (US$508.91 million).

In particular, the market cap of Kolon TissueGene Inc. already plunged from 2.6 trillion won (US$2.21 billion) as of the end of last year to 500 billion won (US$424.09 million) as of May 29, when its stock trading was suspended due to the “Invossa” fiasco.

Celltrion Healthcare Co., which ranks first in terms of market cap in the KOSDAQ, is excluded from counting. Celltrion Healthcare is currently classified as a distributor, while Sillagen Inc. and Helixmith Co. are listed in the “other services” sector and HLB Co. in the “transportation equipment and component” sector, instead of the biotech group.

As a result, the pharmaceutical and biotech sector is estimated to have logged a larger market cap loss when considering the firms that are not categorized as the sector in the market.

The market cap of Celltrion Healthcare fell 2.50 trillion won (US$2.12 billion) in the first half, while that of Sillagen dropped 1.60 trillion won (US$1.36 billion), Helixmith 1.40 trillion won (US$1.19 billion) and HLB 1.70 trillion won (US$1.44 billion). The decrease in market cap of the four companies alone reached 7.20 trillion won (US$6.11 billion).