Samsung Biologics shares fall by 20% after Korean investigation

pharmafile | November 13, 2018 | News story | Manufacturing and Production Shares, accounting, pharma, smasung biologics, stockmarket 

Shares in Korean firm Samsung BioLogics plummeted this week, falling by as much as 20% on Monday, after the South Korean Securities and Futures Commission (SFC) indicated that it will issue a ruling on the 14th of November over the company’s alleged violation of accounting rules.

The South Korean regulator is seeking the dismissal of Samsung Biologics executives and conditions requiring the use of external auditors for three years.

The announcement has come after Samsung Biologics were accused of ‘intentionally omitting’ information from a public disclosure related to its joint venture with Biogen.

The ruling could lead to Samsung BioLogics being delisted from the Korean stock exchange.

However, analysts believe that would be unlikely.  The head of corporate analysis at CEO Score, Park Ju-gun commented: “Everything is still unclear about how the BioLogics case will end up. I wouldn’t expect it will be delisted since changing the evaluation method doesn’t appear to be meant to deceive its shareholders… But someone at the company’s top level will take legal responsibility if it is found to be negligent or purposeful.”

Nevertheless the announcement of the SFC ruling has knocked 3.9 trillion Korean won (~$3.5 billion) off the company’s overall value.

Louis Goss

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