1. What Happened?
On September 18, 2025, Bioplus announced its decision to repurchase ₩10.5 billion worth of common stock and ₩7.5 billion worth of preferred stock to secure operating and facility funds.
2. Why the Repurchase?
The official reason is to secure ‘operating and facility funds.’ Bioplus is investing in medical devices like anti-adhesion agents and joint tissue repair materials, as well as new pharmaceuticals such as next-generation botulinum toxin and obesity/diabetes treatments. The repurchase likely aims to finance these new ventures and expand into overseas markets.
3. How Will This Affect the Stock Price?
Short-Term Impact:
- Potential Price Drop: The increased supply of shares could put downward pressure on the stock price in the short term.
- Investor Sentiment: Raising funds for ‘operating expenses’ might raise concerns about the company’s financial health.
Long-Term Impact:
- Positive Scenario: If the funds are successfully invested in new businesses, it could lead to enhanced future growth, improved performance, and ultimately, a higher stock price.
- Negative Scenario: If performance doesn’t improve after the repurchase, or if investments in new businesses falter, the stock price could be negatively impacted.
4. What Should Investors Do?
Rather than focusing solely on the repurchase itself, investors should closely monitor Bioplus’s specific plans for the funds and the subsequent results. Consider the company’s growth strategy, global competitiveness, and short-term profitability when making investment decisions. Pay particular attention to the performance of new business investments.