Samsung BioLogics shares fall on audit concerns

Samsung BioLogics Co. Ltd. (KSE:207940) fell W84,000 (17%) to W404,000 on Wednesday after the company received undisclosed details regarding the implementation of an audit by Korea's Financial Supervisory Service (FSS). The stock move translates to a loss of W5,558 billion ($5.2 billion) in market cap.

In April 2017, the company was informed that FSS would conduct an audit. This came after media reports said the agency was planning to reexamine the accounting procedures of the company's 2016 IPO, including its accounting for Samsung Bioepis, a JV between Biogen Inc. (NASDAQ:BIIB) and Samsung BioLogics. Biogen held a 5% stake in the JV on March 31, but holds an option to increase its stake to 49.9%...