[Hot Stock] Sejong Medical Surges 16% on News of Acquisition of Duwon Science Pharma

[Asia Economy Reporter Lee Seon-ae] On the 14th, Sejong Medical's stock price surged.

As of 9:30 AM that day, Sejong Medical was trading at 3,585 KRW, up 16.59% from the previous trading day.

The reason Sejong Medical's stock price showed strength from the early morning session is interpreted as the decision to acquire 100% of the shares of Duwon Science Pharmaceutical. The day before, Sejong Medical announced that it would acquire 100% of Duwon Science Pharmaceutical's shares and develop into a comprehensive pharmaceutical company.

Duwon Science Pharmaceutical has initiated factory construction for entry into the pharmaceutical industry over the past two years, and last week submitted GMP (Good Manufacturing Practice) certification documents to the Ministry of Food and Drug Safety. According to Sejong Medical, preparations for the production of external solutions, ointments, and creams at the factory have been completed, and the tablet and capsule production lines will be completed soon.

Sejong Medical has set a plan to transform into a comprehensive pharmaceutical company with the acquisition of Duwon Science Pharmaceutical. Since Duwon Science Pharmaceutical has not only drug manufacturing but also distribution capabilities, the affiliated company Canaria Bio is planning to acquire the Korean distribution rights for Oregovomab, which it is developing. Accordingly, Sejong Medical is also considering the production of biopharmaceuticals starting with Oregovomab.

Yoon Byung-hak, CEO of Sejong Medical, said, “The newly built manufacturing plant of Duwon Science Pharmaceutical is a production facility capable of achieving annual sales of 300 billion KRW, and if GMP approval is obtained, rapid sales growth is expected.”