'Company Unaware of Clinical Progress'... Concerns Grow Amid Il-yang Pharmaceutical's Stock Surge (Update)

Ilyang Pharmaceutical's COVID-19 Clinical Trial Rumors Trigger Stock Surge
Company States "Clinical Trial Entrusted to Alpham... Official Announcement Planned Upon Results"
Excessive Expectations for COVID-19 Treatment... Investment Caution Advised

[Asia Economy Reporter Hyungsoo Park] Ilyang Pharmaceutical has urged caution regarding unverifiable matters related to the development of a treatment for the novel coronavirus infection (COVID-19). As an unverified response appeared on a Russian site conducting clinical trials, and the stock price surged sharply, concerns are growing about side effects caused by excessive expectations.

According to the financial investment industry on the 17th, rumors circulated this morning that Ilyang Pharmaceutical is conducting Phase 3 clinical trials in Russia for ‘Suppect,’ a chronic myeloid leukemia treatment, which is expected to be effective against COVID-19. The source of the rumor is a Russian-language website.

In May, Ilyang Pharmaceutical received approval from the Russian government to conduct Phase 3 clinical trials developing ‘Suppect,’ a chronic myeloid leukemia treatment and the 18th domestic new drug, as a COVID-19 treatment. This is the first case of a domestic new drug receiving clinical approval overseas as a COVID-19 treatment. Since it is expanding indications to COVID-19 through drug repositioning of a domestically proven safe new drug, it has the advantage of being commercialized as a treatment faster than other candidate substances.

The clinical trials are conducted under the supervision of Alpham, the top pharmaceutical company in Russia. The trials involve 145 mild to severe COVID-19 confirmed patients at 11 institutions in Russia and neighboring Belarus. Ilyang Pharmaceutical has granted Alpham exclusive rights and sales rights only in Russia and Belarus. Alpham will import and sell all finished products from Ilyang Pharmaceutical upon successful completion and commercialization of the trials. Ilyang Pharmaceutical will exercise rights over clinical results in countries other than Russia and Belarus.

With the rapid approval of Phase 3 trials, expectations for COVID-19 treatment development are high, and rumors of the final stage of clinical trials acted as a trigger for stock price increases. The related information spread through messengers mainly used by securities investors, further amplifying the stock price rise.

However, Ilyang Pharmaceutical expressed concern over increased stock price volatility due to unverified facts. A company official said, "The site cannot be trusted, and there is no one in Korea or Russia who can respond to clinical trial-related inquiries." He added, "Ilyang Pharmaceutical has entrusted Alpham with clinical trial-related matters," and "Ilyang Pharmaceutical itself cannot confirm the progress of the trials."

Ilyang Pharmaceutical stated, "We plan to officially announce the details after confirming the final results," adding, "Although investors continue to inquire, we can only respond that it is 'groundless' at this time."

In the market, there are criticisms that it is inappropriate to use the Russian site alone as an indicator for investment decisions when the reliability of the site and responses cannot be verified. The sharp rise in the stock price of a pharmaceutical company with a market capitalization exceeding 1 trillion won due to rumors of unknown origin is pointed out as a clear example of excessive expectations that developing COVID-19 treatments and vaccines will generate enormous added value.

This content was produced with the assistance of AI translation services.