GL PharmTech shares fell sharply even after Recoflavone, a drug it co-developed with Aju Pharm, won new drug approval from the Ministry of Food and Drug Safety. Analysts point to profit-taking, as expectations for the approval had already been priced in and the product launch remains more than a year away.
GL PharmTech was trading at 5,270 won on the 9th, down 8.65%, or 500 won, from the previous session, according to the Korea Exchange. A day earlier, the company received approval for Recodu Eye Drops 5%, a Recoflavone-based dry eye treatment, as South Korea's 44th new drug.
The decline is attributed to the approval having been priced in ahead of the announcement. The stock had climbed 46.2% from 4,070 won on the 10th of last month, when a share consolidation was completed, to an intraday high of 5,950 won on the previous day, when the approval came through.
The wait for actual revenue also appears to have prompted selling. The domestic launch is scheduled for the second half of 2027 after drug pricing negotiations. The company holds sales rights in China, Japan and Europe and is reviewing overseas expansion and technology partnerships, though no contracts have been signed to date.
Recodu Eye Drops 5% is the first new chemical entity for dry eye disease developed in South Korea. Unlike existing treatments centered on artificial tears that only relieve symptoms, the drug increases tear secretion and promotes mucin production while also acting as an anti-inflammatory and aiding corneal epithelial recovery. South Korea's dry eye treatment market is worth about 500 billion won, and the company aims to secure a 10% market share within several years through a sales rights agreement with a major domestic pharmaceutical firm.
