[Asia Economy Reporter Lim Jeong-su] Boryung Pharmaceutical is showing a steep upward curve during trading on the KOSPI on the 29th. This is interpreted as reflecting expectations that sales of Yonggaksan, which has research results indicating preventive and therapeutic effects against COVID-19, and its main product anticancer drugs will improve.
As of 10:20 AM on the day, Boryung Pharmaceutical is trading at 21,850 KRW, up 8.44% from the previous day. Starting with a slight rise, Boryung Pharmaceutical saw explosive buying momentum from around 9:30 AM, soaring to rise more than 21% at one point during the session.
Boryung Pharmaceutical also showed a sharp rise on the 11th and 12th. The stock price was influenced by the publication of a paper revealing that Yonggaksan, produced by Boryung Pharmaceutical, has preventive and therapeutic effects against COVID-19.
According to a paper by Dr. Lee Chang-jun’s team at the Institute for Basic Science, published on the preprint site BioRxiv on the 11th, the researchers analyzed that platycodin D, which is abundant in balloon flower root (doraji), is effective in preventing coronavirus infection and inhibiting its proliferation.
Following the publication of the paper, Yonggaksan experienced a shortage at pharmacies for a time. Boryung Consumer Healthcare recently announced plans to renew the product lineup packaging of Yonggaksan to boost sales.
Sales of the main anticancer products are also steadily improving. Sales of anticancer drugs such as Gemza, Genexol, Zeloda, and Megeace are expected to increase significantly this year. Based on 2019 data, anticancer drug sales were 110 billion KRW, up about 61% from 66.9 billion KRW in 2015.
Moon Kyung-jun, a researcher at IBK Investment & Securities, analyzed, "The upcoming listing of BygenCell, in which Boryung Pharmaceutical holds shares, is also a factor that increases corporate value."
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