The share prices of Samsung BioLogics and Celltrion rose Wednesday even though the two companies were still under allegations of accounting violations.

As of 2:20 p.m., Samsung BioLogics’ shares stand at 400,500 won ($355), up 1.65 percent from the previous trading day. It rose on the second consecutive day since the Korea Exchange (KRX) decided to allow continued trading of Samsung BioLogics’ shares on the KOSPI, the country’s main bourse, on Tuesday.

The company ended Tuesday’s trading with a share price of 394,000 won, a 17.7 percent increase from Nov. 11 when the KRX suspended its trading for alleged accounting fraud.

Experts believe that investment sentiment of the shareholders and investors have recovered mainly due to the quick decision from the KRX.

“The uncertainties surrounding the delisting, which was the most worrisome scenario, have been removed as well as the concerns about future order receipts had the trading suspension period been prolonged further,” said Huh Hye-min, an analyst at Kiwoom Securities. “Concerns about the impact on the pharmaceuticals industry were also minimized.”

The worst seems to have passed and the market will move according to fundamentals, the analyst added.

Huh also stressed that as Samsung BioLogics is not only in the business of biosimilars but also in contract manufacturing organization (CMO) business, it has a long-term and stable business model.

“The company will be able to serve as a contract development organization (CDO), which will generate synergy with the CMO business in the mid- to long-term, Huh noted.

Celltrion and its subsidiary Celltrion Healthcare also saw their share prices rise on Wednesday despite their plunge the day before when the news broke out that Celltrion Healthcare is under regulatory probe for allegedly inflating its revenue through inter-affiliate trading.

On Tuesday, the Financial Supervisory Service (FSS) stated that it had launched an investigation into Celltrion Healthcare on allegations that the company sold its local distribution rights to Celltrion, its parent company, to claim the 21.8 billion won as revenue and hide its operating losses in the second quarter.

“Concerning the transfer of domestic sales rights, Celltrion Healthcare can generate sales revenue by using its exclusive global sales rights,” Celltrion Healthcare said in response to such allegations.

After the news, Celltrion shares finished the market at 222,000 won Tuesday, a substantial 10 percent decrease from the previous trading day, while Celltrion Healthcare stood at 71,600 won, a 12 percent drop.

As of Wednesday, however, the two companies showed an upswing.

Celltrion shares rose 2.95 percent to 226,500 won at 2:20 p.m. on Wednesday. Its subsidiaries Celltrion Healthcare and Celltrion Pharma were also up 3.21 and 3.44 percent, respectively.

Market watchers said the rises were due to low-priced purchases during the investigations, anticipating the rush of buy orders.

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