In today’s briefing:
- Shinpoong Pharmaceutical (019170 KS): Three Concerns Are Clouding the Upside Potential
- Japan’s Governance: Corporate Governance Evaluation of Pharmaceutical Companies
Shinpoong Pharmaceutical (019170 KS): Three Concerns Are Clouding the Upside Potential
- Shinpoong Pharmaceutical (019170 KS) management is accused of raising KRW 25 billion in slush funds. If found guilty, the shares may be suspended to trade in the stock exchange.
- The company’s oral COVID-19 drug is in phase 3 trial. However, late entry and uncertainty over the efficacy of multiple variants of the COVID are dampening sentiment.
- Shinpoong Pharmaceutical is investing heavily in R&D to build-up a rich pipeline, which will pressurize profit in near-term.
Japan’s Governance: Corporate Governance Evaluation of Pharmaceutical Companies
- Since I am interested in Eisai’s corporate governance initiatives, this article would like to analyze them in conjunction with the situation of pharmaceutical companies.
- Eisai has an outstandingly high rating, except for the fact that it has anti-takeover measures. The other 3 companies that have anti-takeover will need to improve corporate governance practices considerably.
- The growth policy is reasonable and clearly explained, but there is still room for improvement in the use of the retained cash and disclosures in English for Eisai.
Before it’s here, it’s on Smartkarma
