The Celtelion Trio Unable to Bounce Back... When Will the Recovery Come?

Celltrion Falls 20% Since the 12th
Celltrion Healthcare and Celltrion Pharm Also Drop Around 16-19%
Excluded Despite KOSPI Rebound and Uptrend
Potential Rebound Due to Success of COVID-19 Antibody Treatment

Celltrion's novel coronavirus disease (COVID-19) antibody treatment 'Rekkironaju' [Image source=Yonhap News]

[Asia Economy Reporter Minwoo Lee] Although the KOSPI, which had been sluggish, is showing signs of rebound, the stock prices of the three Celltrion siblings?Celltrion, Celltrion Healthcare, and Celltrion Pharm?are struggling to recover. As rotation trading focuses on sectors like semiconductors and secondary batteries, these stocks are hardly attracting attention. It remains to be seen whether they can rebound with the future supply of new coronavirus (COVID-19) antibody treatments.

As of 9:20 a.m. on the 22nd, Celltrion's stock price recorded 308,500 KRW, down 1.12% from the previous day. This marks nearly a 20% decline compared to the closing price on the 12th. Market capitalization also dropped from 51.8392 trillion KRW on the 12th to the 41 trillion KRW range that morning. Nearly 10 trillion KRW evaporated in ten days, causing its market cap ranking to fall from 7th to 9th place.

Celltrion Healthcare and Celltrion Pharm, listed on the KOSDAQ, have also failed to escape sluggishness. From the 12th to the previous day, they fell by 16.9% and 19.4%, respectively. This contrasts sharply with the KOSPI, which dropped to just below the 3,000 level before rebounding to an all-time high of 3,160.84 as of the previous day's closing price.

It is analyzed that investor sentiment has shifted toward new industries such as automobiles, semiconductors, and the internet, leading to neglect of the bio and pharmaceutical sectors. During this period, Kia Motors surged on news that it would produce the Apple Car, increasing its market capitalization by about 8 trillion KRW. NAVER's market cap, which was below 50 trillion KRW on the 12th, also rose to the 55 trillion KRW range as of that morning.

However, since expectations for successful development of COVID-19 treatments remain, there is a forecast that additional upward potential is sufficient. Celltrion's COVID-19 antibody treatment, 'Rekkironaju,' is currently considered to have passed the critical threshold. The Ministry of Food and Drug Safety judged that Celltrion's Phase 2 clinical trial results demonstrated safety and efficacy. The advisory committee recommended product approval on the condition of conducting Phase 3 clinical trials, making it possible for the treatment to be deployed as early as the beginning of next month.

Myungseon Lee, a researcher at Shin Young Securities, explained, "Celltrion has already completed production of 100,000 doses of Rekkironaju, enabling immediate supply upon conditional approval in Korea. They are applying for emergency use authorization in Europe and the United States while preparing production for 2 million doses. This indicates that the company is transforming from a biosimilar firm into a global antibody new drug developer, which suggests additional growth potential."