South Korean financial authorities are looking into a looming suspicion on possible insider information leakage of market-friendly news of the 1 trillion won ($895 million) worth deal between Genentech and Hanmi Pharmaceutical Co. that is already embroiled in the insider trading scandal related to the termination of the company’s multibillion-dollar deal with Boehringer Ingelheim.

According to multiple sources in the financial investment industry on Thursday, some market analysts covering the bio sector are said to have tipped institutional investors that Hanmi Pharmaceutical would announce “a mega deal soon” about 10 days before the actual announcement of an exclusive license-out agreement with Genentech on its anti-cancer treatment was made.

The Financial Services Commission and Korea’s securities exchange operator Korea Exchange have embarked on a fresh investigation on the possible leakage of the positive news, which could further expand the financial authorities’ ongoing probe into illegalities in the country’s star pharmaceutical company by putting many market analysts covering the bio sector under interrogation.

Amid spreading repercussions of Hanmi Pharmaceutical for withholding its information about the breakdown in multibillion-dollar out-licensing deal with Boehringer Ingelheim, the drug maker has been already under an extensive probe on the suspicion that the insider information on the upsetting news had been leaked via mobile messengers like Kakaotalk. Investigators at the FSC on Tuesday seized mobile phones and documents of some employees at Hanmi Pharmaceutical.

Hanmi Pharmaceutical share price that ended at 549,000 won on September 13 right before the three-day long Chuseok holidays had increased for seven consecutive trading sessions from September 19 to 27. The drug maker disclosed the exclusive deal with Genentech in a regulatory filing on September 29 when its shares ended at 620,000 won.

For the 10 days until September 29, its share price jumped 13 percent, raising suspicion on possible inside information leakage of the positive news. “The company’s stocks could continue to rise after information on an imminent mega deal has spread around the Chuseok holidays,” said an unnamed official in the brokerage industry.

Shares of Hanmi Pharmaceutical ended on Friday at 423,000 won, down 27,500 won, or 6.1 percent, from the previous session.

By Choi Jae-won

[ⓒ Pulse by Maeil Business News Korea & mk.co.kr, All rights reserved]