Samhchundang Pharm said Monday that CEO Jeon In-seok has withdrawn a 250 billion won ($1.9 billion) plan to sell shares in a block deal that was disclosed March 24.
The company said the sale, originally intended to raise funds to pay taxes, had been misunderstood in the market and was weighing on the company’s value.
Jeon said he decided to pull the deal amid growing distrust and concerns it could damage shareholder value. The planned sale was meant to cover taxes including gift tax, but some in the market raised suspicions that the size of a U.S. supply contract had been exaggerated.
“There were no falsehoods in the contract details,” Jeon said, adding that he could not “leave the situation as it is” when negative allegations could harm shareholders. He said protecting the company’s underlying value took priority over meeting his personal financial obligations.
Samhchundang Pharm said it will hold an afternoon news briefing to explain the withdrawal, allegations related to S-PASS and details of the U.S. contract.
The company is said to be considering alternatives such as stock-backed loans instead of selling shares to pay the taxes. It said the approach is aimed at stabilizing the share price and reinforcing its commitment to responsible management.
Samhchundang Pharm said it will proceed with its business plans without disruption, with key milestones ahead including additional global supply contracts in the second half of this year and clinical trials for oral insulin.
* This article has been translated by AI.
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