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Solux Swings Between Highs and Lows
According to KG Zeroin’s MP DOCTOR, formerly MarketPoint, Solux shares tumbled on May 18 after reports emerged that Aribio mentioned the possibility of pursuing an independent Kospi listing. The stock later rebounded following clarification from the company and closed up 2.8% at 5,730 won.
Solux had recently rallied on expectations of a merger with Aribio. Investor sentiment improved further after Aribio announced a global development and commercialization agreement with China’s Fosun Pharma for Alzheimer’s disease candidate AR1001. The deal was reportedly worth a total of $4.7 billion, or about 7 trillion won.
However, sentiment shifted abruptly during a press conference held the same day when Aribio mentioned the possibility of a direct listing. Aribio Co-CEO Sung Soo-hyun said the company would continue pursuing the merger with Solux but added that it was also reviewing various listing options, including a Kosdaq listing and a possible Kospi listing.
The market interpreted the remarks as effectively signaling the possibility of an independent initial public offering. Concerns grew that expectations for Aribio’s backdoor listing through Solux, which had driven Solux shares higher, could weaken, triggering heavy selling during the session.
Solux shares at one point plunged 25.5% intraday to 4,150 won. The stock later recovered losses after the company issued a statement saying there had been no change to its plan to pursue the merger with Aribio.
Solux said the possibility of a direct listing was mentioned only as one of several strategic options and did not indicate an official shift in direction or cancellation of the merger. The company added that no decisions had been made regarding changes to the merger structure or a transition to a direct listing.
The company also said it aims to build a long-term growth structure by combining its stable lighting and electrical construction business with biotech drug development capabilities and synergies with newly acquired Chavaccine.
Chavaccine also surged to as high as 4,930 won during the session but eventually closed down 20.02% at 3,355 won.
Regarding the future relationship among Solux, Aribio and Aribio Lab, Sung said the three companies would grow together and that Solux would take on the role of a holdings company.
HLBbiostep Slides on First Day Back
HLBbiostep fell 24.76% on its first trading day after trading resumed.
Trading in HLBbiostep had been suspended from April 24 to May 15 due to a stock consolidation and relisting process.
In March, HLBbiostep decided to consolidate every five common shares into one share. As a result, the total number of outstanding shares fell from 87.16 million to 17.43 million, while the par value per share increased from 100 won to 500 won. The company said the consolidation did not involve a capital reduction and would not affect corporate value.
HLBbiostep said the stock consolidation was intended to maintain an appropriate number of circulating shares and improve stock price stability to enhance corporate value.
The market also viewed the move as a response to financial regulators’ efforts to phase out penny stocks. Before the reverse split, HLBbiostep’s share price had fallen to the low 1,000 won range, raising concerns that it could become a penny stock.
The company said it plans not only to stabilize its share price but also to accelerate expansion of its business structure. An HLBbiostep official said the company would strengthen its integrated solution system spanning nonclinical and clinical stages through collaboration with affiliates including HLB BioCode and Clips BnC.
The company said it aims to organically connect the entire drug development process, from candidate evaluation and toxicity testing to analysis, clinical operations and support for investigational new drug applications, in order to secure more clients.
HLBbiostep also plans to expand globally by strengthening services for overseas clients and building development support systems that meet international regulatory standards.
The company is also preparing for next-generation nonclinical testing trends amid growing demand for alternatives to animal testing. An HLBbiostep official said the company plans to strengthen organoid and organ on a chip evaluation platforms through cooperation with Dutch biochip platform company Chiron.
Huons Gains While HuonsGlobal Falls
Investor attention turned to HuonsGroup after HuonsGlobal disclosed that biotech subsidiary Huonslab would be merged into Huons.
Huons said the merger would strengthen its clinical pipeline and long-term competitiveness by adding Huonslab’s novel drug and biosimilar assets to its existing business.
However, some HuonsGlobal shareholders opposed the move, arguing that a key growth asset with strong licensing-out potential was being shifted from the holding company to the operating company.
Huonslab owns the “HyDIFFUSE” platform, which converts intravenous drugs into subcutaneous formulations and is reportedly pursuing joint development deals with global pharmaceutical firms.
Following the announcement, Huons shares edged higher in after-hours trading, while HuonsGlobal shares fell 2.77%.
