[Market Focus] Koas Weakens on News of Failed Acquisition of New Drug Developer

Koas saw its stock price weaken in early trading on September 9 following news that its acquisition of Novelty Nobility had fallen through.

As of 9:22 a.m. on this day, Koas shares were trading at 7,900 won on the Korea Exchange, down 6.84% from the previous session. The stock opened at 8,180 won and at one point during the session dropped as low as 7,710 won.

Investor sentiment appears to have deteriorated after the acquisition of the antibody-based new drug development company Novelty Nobility was canceled. The previous day, Koas announced that it had received an official notice of contract termination from Novelty Nobility, resulting in the cancellation of its decision to acquire 2,441,009 new shares of Novelty Nobility (a 14.28% stake).

Koas had been pursuing the acquisition of Novelty Nobility to enter the pharmaceutical and biotech business. To this end, the company had planned a total investment of 50 billion won, including a 15 billion won third-party allotment capital increase and the purchase of privately placed convertible bonds issued by Novelty Nobility.

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