[Edaily Reporter NA EUN-KYUNG ] SLSBio(Specialty Lab Solution Bio) Co., Ltd(246250), a company specializing in pharmaceutical quality control, is being delisted from the stock market three years after transferring its listing to KOSDAQ. Although it entered KOSDAQ with annual sales once exceeding 10 billion won, it ultimately faced delisting after losing its qualification as a pharmaceutical testing and inspection agency—its core business—and struggling to stabilize its operations.

The Korea Exchange announced on the 23rd that it will lift the trading suspension on SLSBio(Specialty Lab Solution Bio) Co., Ltd’s shares starting on the 27th to facilitate liquidation trading following the company’s delisting. The liquidation trading period will last for seven trading days, from October 27 to November 4, and the scheduled delisting date is November 5.

The Exchange determined that the company met the delisting criteria after comprehensively considering factors such as its going concern status and management transparency. Accordingly, trading in SLSBio Co., Ltd.'s shares—which had been suspended since June of last year—will resume solely for the duration of the liquidation trading period.

Established in 2007, SLSBio(Specialty Lab Solution Bio) Co., Ltd is a biotechnology company that has engaged in pharmaceutical quality control, support for new drug development, and the development of in vitro diagnostic devices as its core businesses. Its primary source of revenue was a business in which it was commissioned by pharmaceutical companies to conduct drug testing to verify compliance with quality and safety standards. The company also pursued the development of diagnostic devices using “NTMD,” a nanotechnology-based multiplex diagnostic platform.

After listing on KONEX in 2016, the company transferred its listing to KOSDAQ on October 20, 2023. The initial public offering price was 7,000 won, and the stock price underperformed from the very first day of trading. On the afternoon of October 20, 2023—the day of the transfer to KOSDAQ—the stock price briefly fell to 6,970 won, below the initial public offering price. On June 9 of last year, just before trading was suspended, the closing price was 1,969 won.

Earnings had also been on a downward trend even before the KOSDAQ listing. While SLSBio Co., Ltd. recorded revenue of 10.8 billion won and operating profit of 2.4 billion won in 2022, revenue declined to approximately 9.0 billion won in 2023 and further to about 8.4 billion won in 2024. Operating profit also fell to around 1.0 billion won and 300 million won, respectively, during the same period.

The decisive setback occurred in June of last year. The Ministry of Food and Drug Safety denied the company’s re-designation as a pharmaceutical testing and inspection agency, citing failure to meet certain criteria, which led to the suspension of its core quality inspection business. As the company could no longer operate the business that accounted for a significant portion of its revenue, concerns about its operational sustainability grew.

The Korea Exchange deemed this a grounds for a substantive review of listing eligibility and suspended trading of the company’s shares effective June 10 of last year. Subsequently, the Corporate Review Committee voted to delist the company in September of the same year.

SLSBio(Specialty Lab Solution Bio) Co., Ltd filed an appeal and took steps to regain its status as a testing and inspection institution. After receiving re-approval from the Ministry of Food and Drug Safety in October of last year, the company resolved the grounds for the business suspension, and the Korea Exchange granted a 10-month improvement period on the 31st of that same month.

However, the impact on its financial performance due to the suspension of its core business was significant. Last year’s revenue was approximately 4 billion won, a decrease of about 52% compared to the previous year. The company recorded an operating loss of approximately 4.1 billion won and a net loss of approximately 4.9 billion won, slipping into the red. This year, additional grounds for a substantive review of listing eligibility arose due to insufficient revenue in either the first half or a single quarter.

On August 31, following the conclusion of the 10-month improvement period, SLSBio(Specialty Lab Solution Bio) Co., Ltd underwent a review of its implementation of the improvement plan but ultimately failed to maintain its listing. Although the company regained its status as a testing and inspection agency, the exchange decided to delist it after a comprehensive review of the company’s going concern and management transparency.

A liquidation sale is a procedure that provides investors facing delisting with a final opportunity to buy or sell shares. Unlike regular stock trading, price limits do not apply, which can lead to significant stock price volatility. If delisting takes place on November 5, SLSBio(Specialty Lab Solution Bio) Co., Ltd shares will no longer be tradable on the KOSDAQ market.