The fall from grace has been as spectacular as its rise in the case of Shinpoong Pharm Co.

One-time No. 2 stock on the Kosdaq market with its stock price zooming by a colossal 3,200 percent two years ago lost nearly 75 percent of its value last year and another 25 percent so far this year due to failure in a clinical trial of a Covid-19 therapeutic and police investigations into alleged slush fund activities.

Shinpoong’s share price fell more than 25 percent this year, breaking 52-week lows six times in January alone. The once star stock dubbed to become a gamechanger with a potential oral medicine against the coronavirus in 2020 has become the second biggest loser over the past year. The first decliner is BK Tops with a 76.79 percent fall.

In the first year of pandemic, the company’s stock price spiked from 6,470 won ($5.37) on Feb. 3, 2020 to 25,000 won on Apr. 8. It peaked at 214,000 won on Sept. 21.

The surge was driven by the company’s progress in the clinical development of Pyramax, an oral Covid-19 medicine, but the stock price began to plummet on Jul. 5 last year when the company announced its Phase 2 clinical trial failed to meet efficacy endpoints.

To make matters worse, police launched investigations into alleged 25 billion won slush funds raised by the company’s management, further raising concerns among investors. The company could be come under review for delisting if there is any indictment of former or incumbent executives for embezzlement or breach of trust.

By Pulse

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