A pharmaceutical stock that had risen to the top of the KOSDAQ market capitalization rankings has actually fallen more than 80 percent from its peak in less than half a year. This is the story of Samchundang Pharmaceutical. Let’s summarize why the stock price soared and then plummeted, and what needs to be examined at this point.
What kind of company is Samchundang Pharmaceutical?
![Image of Samchundang Pharmaceutical's headquarters building and prescription eye drops, established in [year]](https://goodlifetips.co.kr/wp-content/uploads/2026/09/image-113.jpg)
Samchundang Pharmaceutical is a pharmaceutical company established in 1943 that has focused on producing specialized medicines such as eye drops and antibiotics.
The manufacturing of disposable eye drops is handled by its subsidiary, Optus Pharmaceutical.
Given that the company has consistently maintained its position in the ophthalmic pharmaceutical sector for a long time, it was not a stock that attracted significant attention until expectations for new business opportunities arose.
What were the expectations for new businesses that pushed up the stock price?
The key factors behind the surge in the stock price were largely twofold. One was the development of oral diabetes and obesity treatments utilizing the proprietary S-PASS platform, which delivers drugs in an ingestible form, and the other was the biosimilar business for the ophthalmic treatment Eylea.
Both businesses were sectors with large market sizes and prominent growth potential.
With the addition of news regarding contracts in the European region, investor expectations grew rapidly.
As a result, the stock price rose to 1,233,000 won during trading on March 30, 2026, taking the top spot in KOSDAQ market capitalization.
Why did the plunge start?
The reason the stock price began to fluctuate was the discrepancy between the promotional content regarding the European contract and the actual disclosure. At the time, the contract size mentioned during the promotion was approximately 5.3 trillion won, but the actual disclosed total of the fixed contract amount and milestones was about 50.8 billion won, a much smaller amount.
As this difference became known, investors' doubts about the contract terms and profit structure grew.
To make matters worse, it was also revealed that the company failed to properly comply with fair disclosure obligations regarding business performance forecasts.
As a result, the company was designated as a non-compliant disclosure entity.
It amounts to the stock price, built up on expectations, starting to collapse due to trust issues.
Eventually, on September 23, 2026, the closing price fell to 165,700 won, and the decline from the peak reached approximately 86.6 percent.
Development news continued even after the sharp decline.
Even after the stock price plummeted, business-related news did not cease entirely. In July 2026, there was news that the company had received a Pre-ANDA response from the U.S. Food and Drug Administration (FDA) regarding oral semaglutide.
However, this procedure is merely a preliminary consultation stage conducted before applying for generic drug approval, and does not imply actual sales approval or successful commercialization.
In late August 2026, news also emerged regarding a patent settlement related to Aililia biosimilars.
However, even after the agreement, the specific launch date has not yet been disclosed.
What criteria should be used for judgment in the future?
The point to reiterate in this case is that the total amount mentioned at the time of the contract announcement is a different concept from the actual fixed consideration disclosed. Since the total contract amount often includes milestone payments that are made only upon the fulfillment of conditions, it may differ from the actual fixed earnings at the present time.
Furthermore, the signing of the contract itself and actual monetization are separate matters.
You must separately verify whether development leads to actual approval and launch, and whether it is followed by regulatory judgments and sales performance.
It is reasonable to make judgments based on actual business performance to be confirmed in the future, rather than using past peak prices as a standard.
It is also necessary to develop the habit of directly checking the original disclosure text or exchange announcements.
Q&A
Q1. How much has Samchundang Pharmaceutical's stock price dropped?
It fell by about 86.6 percent, dropping from an intraday high of 1,233,000 won on March 30, 2026, to a closing price of 165,700 won on September 23 of the same year.
Q2. What was the background of the surge in stock prices?
Expectations for the development of diabetes and obesity treatments utilizing the oral drug delivery platform S-PASS and the Aililia biosimilar business were the key factors driving up the stock price.
Q3. What is the direct cause of the sharp decline?
The cause was identified as the difference between the promotional amount related to the European contract (approx. 5.3 trillion won) and the actual disclosed total of confirmed contract amounts and milestones (approx. 50.8 billion won), as well as the designation as a non-compliant disclosure entity due to the failure to make fair disclosures regarding business performance forecasts.
Q4. Was the business completely suspended after the sharp decline?
That is not the case. Development-related news continued, such as the receipt of the FDA's response to the pre-consultation regarding oral semaglutide in July 2026 and the patent settlement for Aflibercept biosimilars in late August.
Q5. What do I need to check going forward?
It is necessary to distinguish between fixed consideration and conditional milestones in a contract, and to continuously verify through original disclosures and other sources whether development leads to actual approval, launch, or sales performance.