[Special Stock] Kukje Yakpum Surges on Expectations of Expanded Antibiotic Exports to China

[Asia Economy Reporter Ji Yeon-jin] On the 5th, Kukje Pharm is showing a sharp rise as expectations grow for the expansion of exports of the antibiotic it produces to China.

As of 2:22 PM on the same day, Kukje Pharm was trading at 6,900 KRW, up 24.10% (1,340 KRW) from the previous day. The stock price surged to the daily limit during the session but is currently giving back some of the gains.

Kukje Pharm announced on the day that its Cefminox Injection (export name Melnox) has passed the consistency evaluation by the Chinese health authority (NMPA).

The consistency evaluation is a system introduced by the Chinese government in 2016 to improve the quality of pharmaceuticals. It is a verification test that proves equivalence in efficacy and quality control compared to the original product.

By passing this evaluation, Kukje Pharm qualifies to participate in China's national centralized drug procurement program. This program is a system where the Chinese government puts products needed by public medical institutions up for bidding and purchases them through selected companies.

Cefminox Injection is a cephalosporin antibiotic used for sepsis, tonsillitis, bronchitis, pneumonia, pyelonephritis, cystitis, cholecystitis, and other conditions. It has been exported since receiving the Chinese import drug license (IDL) in 2006. The market size for Cefminox Injection in China is estimated to be between 200 billion and 260 billion KRW annually.