[Special Stock] HLB Liver Cancer Drug Fails to Gain US FDA Approval, Plunges Over 20%

HLB group stocks are sharply falling across the board in early trading on the 21st following news that the U.S. Food and Drug Administration (FDA) did not approve HLB's liver cancer drug.

As of 9:15 a.m. on the day, HLB's stock price stood at 46,500 KRW, down 29.97% from the previous trading day. HLB Life Science and HLB Pharmaceutical also dropped 29.94% and 29.92%, respectively, to 5,900 KRW and 17,100 KRW compared to the previous session.

Other HLB affiliates such as HLB Panagen (-29.60%), HLB Biostep (-26.47%), HLB Therapeutics (-25.07%), HLB Innovation (-22.44%), and HLB Genex (-20.18%) are also showing declines.

The decline is interpreted as a deterioration in buying sentiment following HLB Group's announcement that it received a Complete Response Letter (CRL) from the FDA regarding the targeted anticancer drug 'Rivoceranib.' A CRL is an official letter sent by the FDA after a comprehensive review of a drug approval application, indicating that additional actions are required. Previously, in May last year, HLB also received a CRL from the FDA for the first-line liver cancer treatment combining Rivoceranib and Camrelizumab, an immuno-oncology drug from Hansoh Pharmaceutical.

HLB's liver cancer drug had attracted attention as a potential first case of a domestic company completing clinical trials and development independently without technology export and obtaining FDA approval for an anticancer drug. Jin Yang-gon, chairman of HLB Group, had continuously purchased shares of affiliated companies ahead of this FDA approval decision.