Wooridul Pharm Enters Diagnostic Market... Shining After One Year

[Asia Economy Reporter Koh Hyung-kwang] Wooridul Pharmaceutical, whose stock price had halved over the past two years, appears to be starting a rebound this week. This seems to reflect expectations that the value of its shares will rise as its subsidiary, acquired a year ago, has recently gained attention in relation to the novel coronavirus disease (COVID-19).

According to the Korea Exchange on the 6th, Wooridul Pharmaceutical closed the previous day’s session at 6,450 won, down 3.7% from the previous trading day. Although it fell slightly the day before, it had risen for three consecutive trading days prior, increasing by 14.9% just this week.

The rebound of Wooridul Pharmaceutical is largely influenced by its subsidiary acquired last year. In July of last year, Wooridul Pharmaceutical purchased a 27.3% stake in the diagnostic kit company Access Bio for about 30 billion won, becoming the largest shareholder. Access Bio, established in 2002, develops immunodiagnostic and biosensor products for immediate on-site disease diagnosis based on in vitro diagnostic technology, as well as molecular diagnostic products capable of precise diagnosis. It stands out in the diagnostic market, especially holding the world’s number one position in malaria diagnostics. Last month, Access Bio’s influenza diagnostic kit also received sales approval from the U.S. Food and Drug Administration (FDA).

Recently, Access Bio’s subsidiary Wells Bio has attracted attention due to COVID-19, positively impacting Wooridul Pharmaceutical’s stock price. This followed the announcement on the 4th that the Korea Research Institute of Chemical Technology’s CEVI (Novel Virus) Convergence Research Group, which signed a memorandum of understanding (MOU) with Wells Bio, discovered antibodies capable of countering COVID-19.

Wells Bio signed an MOU with the CEVI Convergence Research Group on January 30th to jointly research molecular diagnostic and immunodiagnostic technologies for COVID-19. Following this news, Access Bio’s stock price surged by 25.8% and 7.2% on the 4th and 5th respectively, and Wooridul Pharmaceutical, the largest shareholder of Access Bio, also rose about 15% over three days, riding the upward trend.

A Wells Bio official stated, "We are developing antigen diagnostic kits related to COVID-19 as a national project with the Korea Research Institute of Chemical Technology," adding, "We are focusing our capabilities to commercialize it as soon as possible." An industry insider explained, "Diagnostic kits made using antibodies can complement existing molecular diagnostic products," and "If commercialized, it will enable faster and more accurate diagnosis of COVID-19."