Il-yang Pharm shares lost more than 30 percent of their value this week due to two consecutive failures in pivotal Phase 3 studies seeking new indications, including coronavirus treatment.

On Thursday, the South Korean healthcare company announced in a regulatory filing that its leukemia drug Supect (radotinib) failed to demonstrate efficacy against standard of care in a Phase 3 study conducted by its Russian partner R-Pharm, adding R-Pharm will not go on to seek marketing authorization for the intended indication. Radotinib has been tested as a potential coronavirus cure in Russia.

The latest result knocked down the stock by the daily limit of 30 percent to 35,000 won ($30.94) on Thursday, extending the losing streak for three days in a row.

The announcement follows February’s failed clinical trial of its anti-ulcer drug Noltec as a potential nonerosive reflux disease (NERD) drug, with Phase 3 data not reaching statistical significance.

The shares rebounded slightly Friday morning from the previous day’s steep plunge. As of 10:00 am, the company’s stock price gained 0.7 percent to trade at 35,250 won.

By Park Yoon-gyun and Minu Kim

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