HLB Pharmaceutical Plunges Around 7% in Early Trading as Weakness Continues for Third Straight Day [STOCK NOW]

[Financial News] HLB Pharmaceutical, which surged on news that the U.S. Food and Drug Administration (FDA) had approved Ripiktu, a new cholangiocarcinoma drug, has been declining for several consecutive sessions. After its share price soared more than 60% in a short period on expectations of approval, profit-taking selling emerged and began erasing the gains.
As of 9:06 a.m. on the 2nd, HLB Pharmaceutical was trading at 10,280 won on the KOSDAQ market, down 870 won, or 7.80%, from the previous session. The decline has accelerated after the shares closed 4.67% lower the previous day.
After closing at 7,670 won on the 23rd of last month, HLB Pharmaceutical surged 30.00% on the 28th to 9,620 won, hitting the daily upper price limit. The following day, it climbed another 29.94% to as high as 12,500 won, reaching the daily upper limit for two consecutive sessions. In effect, the share price jumped more than 63% in just four trading days.
The surge was driven by FDA approval of Ripiktu, a cholangiocarcinoma treatment developed by Elevar Therapeutics, HLB's U.S. subsidiary. The drug's generic name is lirafugratinib.
Ripiktu was approved as a second-line treatment for patients with cholangiocarcinoma whose tumors have confirmed FGFR2 gene fusions or rearrangements. Investor sentiment was also lifted by the fact that it was the first case in which a South Korean company directly led the approval process for a global anticancer drug and secured FDA approval. As an HLB Group affiliate, HLB Pharmaceutical benefited from the development.
However, after reaching 12,500 won during intraday trading on the 29th of last month, the shares turned lower. They fell 3.33% on the following day, the 30th, and remained weak on October 1 and 2, dropping more than 17% from their peak. With expectations surrounding the new drug approval quickly priced into the shares, profit-taking appears to have gained momentum.
Meanwhile, Ripiktu is scheduled to launch in the United States in the fourth quarter of this year. Going forward, the stock's performance is expected to depend not only on the FDA approval itself but also on expanded prescriptions and sales results in the U.S. market.

[email protected] Kang Jung-mo Reporter