Corona treatment approval application… Celltrion stock price surged 10%

Some “reflect excessively expectation”
The stock price soared more than 10% when Celltrion, a domestic biomass master, applied for a product license for an antibody treatment for a novel coronavirus infection (Corona 19) on the 29th.

Celltrion announced that it has applied for conditional approval in Korea for the Corona 19 antibody treatment’CT-P59′ to the Ministry of Food and Drug Safety. Conditional authorization is a system in which marketing authorization is granted only with the results of phase 2 clinical trials when there is no existing treatment for a specific disease. CT-P59 was confirmed to be effective in shortening the recovery period of patients with COVID-19 as a result of a phase 2 clinical trial. The Ministry of Food and Drug Safety decided to quickly decide whether to approve or not within 40 days. With the approval of the Ministry of Food and Drug Safety, it is expected that the first Korean Corona 19 treatment will be used by patients around the end of January next year.

With this expectation, Celltrion stock price ended at 36,500 won, a surge of 33,000 won (10.08%) from the previous day. The previous day, it made up for the 4% decline in the news of the sale of shares by outside directors and other related parties.

However, Celltrion explained that “application for approval for clinical trial drugs does not guarantee the final approval decision of the drug regulatory agency.” The permit review process may result in unexpected results, and accordingly, there is a possibility that the commercialization plan may be changed or abandoned. For this reason, some analysts say that expectations for antibody treatment drugs are excessively reflected in the stock price. In a report released twice earlier this month, Credit Swiss, a foreign securities firm, analyzed that the stock price of Celltrion was overvalued, saying, “While the expectation for the COVID-19 treatment led to a rise in the share price of Celltrion, the next year Celltrion’s profits from the treatment will be up to 400 billion won.” Reporter Kim Ja-hyun [email protected]Go to reporter page>