[Featured Stock] 'Clinical Trial Halt and Patent Acquisition Investigation Double Blow'... Daewoong Pharmaceutical Drops Over 6%

[Asia Economy Reporter Hwang Yoon-joo] Daewoong Pharmaceutical is experiencing a sharp decline following news that it will halt Phase 2 and 3 clinical trials for its oral COVID-19 treatment and that prosecutors are investigating the patent acquisition process.

As of 10:34 a.m. on the 21st, Daewoong Pharmaceutical is trading at 163,000 KRW, down 6.86% (12,000 KRW) compared to the previous trading day.

On the 18th, Daewoong Pharmaceutical announced the suspension of clinical trials for its COVID-19 treatment 'Hoistar' (active ingredient Camostat Mesylate · DWJ1248), targeting patients with mild to moderate symptoms.

Daewoong Pharmaceutical explained that the decision to halt the trials was due to an increase in COVID-19 vaccination rates and the spread of the Omicron variant, which has led to a decrease in the rate of symptom worsening. However, clinical trials for severe patients will continue as originally planned.

Separately, news that prosecutors are investigating the overall patent acquisition process of Daewoong Pharmaceutical appears to have also impacted the stock price.

According to media reports, the Fair Trade Investigation Division of the Seoul Central District Prosecutors' Office (Chief Prosecutor Ko Jin-won) conducted witness interviews with the Korean Intellectual Property Office regarding Daewoong Pharmaceutical's patent acquisition process for the Albis group of drugs for peptic ulcers in January 2015. Previously, the Korean Intellectual Property Office was reported to have requested an investigation by prosecutors, applying the 'crime of false acts' under the Patent Act for the first time since its establishment.

Additionally, Daewoong Pharmaceutical is suspected of obstructing competitors by filing a preliminary injunction against patent infringement in court.

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