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SLS Bio |
[Alpha Biz= Paul Lee] SLS Bio (KOSDAQ: 246250) has issued a letter to its shareholders following a temporary suspension of operations in its pharmaceutical quality testing division. The move appears to be an effort to appease investors, but the omission of key information—specifically, the termination of a contract related to obesity treatment drug Wegovy—has drawn criticism for being a calculated evasion.
According to the financial investment industry on June 10, SLS Bio entered into a technology transfer agreement with global pharmaceutical giant Novo Nordisk around July last year, concerning quality control for the obesity drug Wegovy. However, it has now been confirmed that the companies did not proceed with a final quality management contract.
The termination reportedly stemmed from a breach of confidentiality by SLS Bio. Although the initial agreement on quality control for Wegovy was also subject to a confidentiality clause, details of the deal became public in July last year.
An SLS Bio representative stated, “While we did sign a technology transfer agreement for Wegovy quality control, we are not currently conducting any quality management work. We are unable to provide further details.”
Despite the recent business suspension—excluding quasi-drugs—SLS Bio sent a shareholder letter on the day following the regulatory action. However, the company made no mention of the termination of the Wegovy-related contract.
The omission is particularly notable given that SLS Bio’s stock had more than doubled in value based on speculation surrounding the Wegovy quality control deal. From a revised price of around KRW 2,200 in early July 2023, shares surged to KRW 4,790 on August 12, reaching an intraday high of KRW 5,430, marking a new 52-week high.
More recently, in May 2025, shares of SLS Bio hit the daily trading limit on two occasions (May 9 and May 13), again fueled by investor enthusiasm over the Wegovy deal, prompting Korea Exchange to designate the stock as overheated.
Alphabiz Reporter Paul Lee(hoondork1977@alphabiz.co.kr)
