[Kim Saemi, Edaily Reporter] SAM CHUN DANG PHARM has climbed to the top of the KOSDAQ market capitalization rankings, fueling expectations among some investors that market leadership may be shifting toward the biotech sector. However market participants say there is little concrete evidence of strong fund inflows to support such a narrative.





◇SCD PHARM. Takes No.1 Spot…Signal of Sector Rotation?

According to KG Zeroin’s MP Doctor, SAM CHUN DANG PHARM.’s market capitalization reached 21.37 trillion won, making it the largest company on the KOSDAQ. The stock surged 112,000 won (14.09%) to close at 907,000 won.

Over the past year, the company’s share price has skyrocketed by 380.4%, rising from 127,600 won to the 900,000won range. Its 52 week high and low stand at 955,000 won and 127,600 won, respectively a roughly 7.5-fold gap. As recently as early this month, the company ranked fourth in market cap, but jumped to third on March 19 and claimed the top spot just one day later.

Alteogen Inc., which had held the No. 1 spot on the KOSDAQ for about 17 months from August 2024 to Jan. 29, has now slipped to third place. Its shares have remained under pressure after the royalty rate in its licensing deal with Merck & Co. was set at 2%, falling short of market expectations of 4~5%. Meanwhile, EcoPro, now ranked second, has been gaining on expectations of a recovery in the secondary battery sector.

The rally in SAM CHUN DANG PHARM. appears to be driven by multiple expectations, including oral GLP-1 therapies, oral insulin, an Eylea biosimilar, and its S-Pass platform. The company announced on Feb. 26 that it had signed an exclusive distribution and supply agreement for oral GLP-1 products across 11 European countries.

While it initially suggested the deal could be worth around 5.3 trillion won, the exact value was not disclosed in regulatory filings, raising controversy. On March 19, the company also filed an IND for a Phase 1/2 clinical trial of oral insulin in Europe.

Results are expected by the end of this year. Wi Hae joo an analyst at Korea Investment & Securities said “If successful, this could bring the company close to developing the world’s first oral insulin, potentially becoming a game changer,” adding that “the disclosed trial design reflects strong confidence.”

Wi added that “SAM CHUN DANG PHARM. has clearly changed,” noting that the company has already delivered three major catalysts in the first quarter alone. He also described it as a “catfish of the KOSDAQ,” though he did not provide a target price or rating.

With SAM CHUN DANG PHARM. taking the top spot, speculation is growing that market leadership may be shifting from secondary batteries to biotech. Some analysts suggest that biotech, previously underperforming, may now be benefiting from sector rotation, with SAM CHUN DANG PHARM. emerging as a new bellwether.

However skepticism remains over the lack of clear fund inflows. A market participant said, “It is difficult to pinpoint a single decisive factor behind the stock’s surge” adding that “although a KOSDAQ biotech active ETF focusing on technology licensing was recently launched by Mirae Asset, SAM CHUN DANG PHARM’s weighting in the fund is not particularly high nor is it in other biotech ETFs.”

The same source dismissed the idea that ETF inflows are driving the rally, noting, “There is no meaningful evidence of increased capital inflows into biotech related financial products in recent days. It is hard to conclude that ETF or fund inflows are the main driver.”



◇Aprogen Biologics Rallies on Audit Clearance…Signs of ‘Penny Stock Exit’

On the KOSPI, Aprogen Biologics Inc. hit the daily upper limit early in the session, closing up 29.73% at 336 won. Its parent, Aprogen, Inc., also gained 14.33% to 343 won.

The surge appears to have been driven by the company receiving an “unqualified” audit opinion, easing concerns surrounding its audit report. This cleared the way for the company to proceed with a capital reduction proposal at its upcoming shareholder meeting on March 30.

Previously, Aprogen Biologics decided to conduct a reverse stock split, consolidating 15 shares into one. The total number of shares subject to the reduction is about 185.2 million, with the record date set for April 14.

While the move may create the appearance of a 15 fold increase in share price, industry experts note that this is largely a mechanical adjustment, with no change in corporate value essentially an optical effect rather than real shareholder value enhancement.

Recent tightening of regulations on sub 1,000 won “penny stocks” by financial authorities may also have influenced investor sentiment, as the reverse split could help lift the stock above regulatory thresholds.

An Aprogen official said “A shareholder meeting is required to proceed with the capital reduction, and passing the audit was a prerequisite. The inflow of buying interest likely reflects the resolution of audit-related uncertainties.”





◇IMBiologics Corp Delivers ‘Ttattabeul’ Debut, Following Recent IPO Momentum

Meanwhile, on the KOSDAQ, newly listed IMBiologics Corp. achieved a “ttattabeul” (quadrupling from IPO price) on its debut.

The stock surged 300% from its IPO price of 26,000 won to close at 104,000 won. This follows similar first-day performances by AimedBio and Rznomics.

Founded in August 2020 by CEO Ha Kyung sik a former head of the bio research center at HK inno.N, IMBiologics specializes in antibody therapies for autoimmune diseases. It became the first Korean company to enter global clinical trials for autoimmune diseases using a bispecific antibody platform. In 2024, just four years after its founding, the company achieved a global licensing deal worth 1.8 trillion won for its key pipelines IMB-101 and IMB-102.

During its institutional demand forecasting conducted from Feb. 27 to March 6, the company attracted 2,333 institutions, recording a competition ratio of 839:1. About 80% of participating institutions committed to lock up agreements, leading to the IPO price being set at the top of the indicative range (19,000~26,000 won).

CEO Ha said “Building on our core technologies, we aim to expand into immuno-oncology and deliver further achievements ultimately becoming a global leader in immune related therapeutics,” adding that the company would pursue transparent management and responsible governance as a listed firm.