Shinpoong Pharmaceutical fell to a 52-week low. It is interpreted that the news of Jang Won-jun, the second-generation founder and former CEO, being reported to the prosecution had an impact.
On the 17th, Shinpoong Pharmaceutical closed at 9,360 won, down 890 won (8.68%) from the previous trading day. This is the lowest closing price of the year and a 52-week low.
On the same day, the Securities and Futures Commission announced that it had decided to report Jang Won-jun, the second-generation founder of Shinpoong Pharmaceutical, a KOSPI-listed company, and its holding company Songamsa to the prosecution for violating the prohibition on the use of undisclosed important information under the Capital Markets Act.
Shinpoong Pharmaceutical conducted domestic clinical trials to develop a COVID-19 treatment. However, in Phase 2 clinical trials, it failed to meet the efficacy goals of the primary endpoint. Upon learning this, former CEO Jang sold a large amount of Shinpoong Pharmaceutical shares held by the holding company Songamsa through a block deal in April 2021, before the information was publicly disclosed.
As a result of the Securities and Futures Commission's investigation, it was judged that Jang, the actual owner of Shinpoong Pharmaceutical, avoided losses amounting to 36.9 billion won by trading using information related to the clinical trial results of the new drug development that he had obtained in advance.
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