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[Shin-Min Joon, Edaily Reporter] On May 22 the Korean biopharma stock market saw notable price movements led by Shinpoongpharm, Thebiomed and Samsungbiologics. Shinpoongpharm hit the upper limit as expectations rose for a potential patent registration related to its COVID-19 treatment. Thebiomed surged on concerns over a possible avian influenza (AI) outbreak in Brazil the world’s largest chicken exporter. Meanwhile Samsungbiologics saw a slight decline after a recent rally on news of a planned spinoff.

Shinpoongpharm stock trend on May 22. (Image=MP Doctor)

Shinpoongpharm Soars on COVID-19 Patent Prospects

According to KG Zeroin’s MP Doctor (formerly MarketPoint), shares of Shinpoongpharm jumped 29.9% to close at 10,470 won. The stock hit the upper limit early in the KOSPI session, driven by anticipation surrounding a potential COVID-19 treatment patent.

Shinpoongpharm is pursuing a patent that expands the indication of its antimalarial drug Pyramax to include COVID-19. The company recently won an appeal at the Intellectual Property Tribunal after its patent application initially rejected for lack of novelty and inventivenesswas overturned and sent back for reconsideration.

The company had filed for the patent with the Korean Intellectual Property Office in March 2021. In March 2023, the application was rejected, prompting Shinpoong to appeal in June 2024. The tribunal‘s decision now allows the firm to reapply for the patent. Shinpoong has already completed a domestic Phase 3 trial of Pyramax for the expanded COVID-19 indication.

COVID-19 cases are once again on the rise in parts of Asia, including China, Hong Kong, and Thailand, fueling fears of another wave in Korea. The Chinese Center for Disease Control and Prevention reported a 16.2% COVID-19 positivity rate among patients with respiratory symptoms from April 4 to 10, more than double the 7.5% rate at the end of March. Similarly, Hong Kong’s health authority noted that the positivity rate among respiratory illness patients rose from 6.2% to 13.6%.

By contrast South Korea remains relatively stable, with the Korea Disease Control and Prevention Agency reporting 146 hospitalized COVID-19 patients during the same period steady in the 100s over the past eight weeks.

A Shinpoongpharm official stated “We are pursuing three fronts related to expanding Pyramax’s indication to COVID-19 patent registration, academic publications and regulatory approval. The patent registration is the most imminent among them.”

Thebiomed Jumps on Avian Flu Fears

Shares of Thebiomed surged 29.91% to 8,470 won. The rally was attributed to heightened expectations for improved diagnostics sales amid rising avian flu concerns.

Brazil the world’s largest chicken exporter and second largest producer after the U.S. recently suspended poultry exports for 60 days after avian flu was detected in commercial poultry facilities for the first time. South Korea heavily relies on Brazil for its frozen chicken imports sourcing 88% of such imports from the country in 2024, according to the Korea Meat Trade Association.

Highly pathogenic avian influenza (HPAI), especially the H5N1 strain, is considered a strong candidate for the next pandemic. The H5N1 virus has shown increasing potential to spread from birds to mammals and even humans, with recent reports of infections among dairy cows and farm workers in the U.S.

Thebiomed currently markets a government approved diagnostic kit for detecting H5 type avian flu and plans to develop an H7 type detection kit in response to global demand. A company representative stated, “HPAI strains like H5 and H7 have mortality rates exceeding 90% in birds and are known to pose transmission risks to humans.”

Samsungbiologics Slips After Rally on Spinoff Plan

Samsungbiologics closed down 1.87% at 1.08 million won. While the stock initially rose during the session profit taking led to a modest decline by the close.

Shares had rallied 7.11% the previous day after the company confirmed plans to spin off a new entity responding to a Korea Exchange disclosure inquiry. The company will split into Samsungbiologics and a tentatively named new entity Samsungbioepis Holdings.

Samsungbioepis Holdings will oversee subsidiaries such as Samsungbioepis and lead new investments. The spinoff ratio is 0.6503913 for Samsungbiologics and 0.3496087 for Samsungbioepis Holdings. Shareholders holding 100 shares of Samsungbiologics will receive 65 shares of the original company and 35 of the new entity. A shareholder meeting will be held on September 16, with the new shares expected to list on May 22, 2026.

A Samsungbiologics spokesperson stated “The purpose of the spinoff is to eliminate potential conflicts between our CDMO and biosimilar businesses and enhance their competitiveness. It is not related to any restructuring of the group’s governance.”