[Market Focus] Ilyang Pharmaceutical Soars on Acquittal of "Leukemia Drug Stock Manipulation" Charges

Ilyang Pharmaceutical has surged for two consecutive trading days following news that it was cleared of stock price manipulation charges by prosecutors.

As of 1:30 p.m. on April 21, Ilyang Pharmaceutical was trading at 12,560 won, up 1,340 won (11.94%) from the previous trading day. At one point during the session, the stock hit 13,470 won. On the previous trading day, it closed up 8.2%.

On April 17, the Financial and Securities Crime Joint Investigation Unit of the Seoul Southern District Prosecutors' Office concluded that there was no evidence to support allegations related to Ilyang Pharmaceutical's alleged false announcement of the COVID-19 treatment efficacy of its new leukemia drug "Supect," the non-existent Phase 3 clinical trial by Russian company Alpharm, and the alleged economic gains by executives and the owner’s family through the sale of their shares. As a result, all complaints filed by some shareholders were dismissed without charges.

This decision comes about four years after the case was first reported to the police. Previously, some shareholders had filed complaints against Ilyang Pharmaceutical, alleging that the company exaggerated the COVID-19 treatment efficacy of its leukemia drug "Supect" and artificially boosted its stock price by leveraging a non-existent Russian clinical trial. The company itself was also referred to prosecutors under the dual liability rule.

In response, Ilyang Pharmaceutical stated that there was no fabrication or inaccuracy in its press releases regarding COVID-19 treatment development, and that all materials were prepared accurately based on data. The company also actively explained this to investigators and clarified, using research data, that claims by some complainants about selectively favorable reporting were unfounded.