Samsung BioLogics is still showing its robust status in the Korean stock market, despite the recent controversy over the alleged accounting fraud that pushed the firm on the verge of delisting.
The biosimilar maker was accused of cooking the books in May. Since late April, its stock prices have continued to go down.
However, the recent resumption of Samsung BioLogics shares led the firm to recover market capitalization to the level of those in early this year, apparently putting the company out of the accounting controversy.
As of Tuesday, Samsung BioLogics’ market cap ranked fifth, after Celltrion, rising from ninth early this year.
The company’s market cap recorded 26.06 trillion won ($23.2 billion) as of Tuesday, up by 297.7 billion won from 25.77 trillion won on Jan. 2. Its market cap accounted for 1.9 percent of the total KOSPI market on Tuesday, up from 1.6 percent on Jan. 2.
Other pharmaceutical firms also recovered their stock prices to the level of those in early this year, after suffering setbacks due to capitalizing research and development expenses as intangible assets amid the Samsung Biologics accounting issue, analysts said.
The number of top biotech and pharmaceutical firms among 200 KOSPI-listed firms with largest market caps remained almost unchanged at 15 including Celltrion that moved from the KOSDAQ to KOSPI as of Tuesday, compared to 14 on Jan. 2. Except for Celltrion, the 14 companies’ combined market caps accounted for 3.74 percent of the total KOSPI, up from 3.51 percent on Jan. 2.
Some observers said the Korea Exchange’s evaluation committee’s decision not to delist shares of Samsung BioLogics was an unfair favor to Samsung, a conglomerate with a significant impact on the Korean economy.
“Daewoo Shipbuilding and Marine Engineering, which was punished due to 5 trillion won worth window dressing, did not face delisting either in the past,” an official at an accounting firm said. “Industry officials said the Financial Supervisory Service was thoroughly inspecting Samsung BioLogics because of its important status. But I guess this government, too, found it difficult to deal with Samsung’s negative issues.”