[비즈한국] Following the new government's "shareholder-friendly policy" stance, recent moves to enhance shareholder value have emerged within the pharmaceutical industry. This year, Yuhan000100, Boryung003850, and Hugel145020 have carried out "treasury stock cancellations." While the pharmaceutical industry has been somewhat passive regarding treasury stock cancellation in the past, attention is now focusing on future trends as amendments to the Commercial Act—which include "mandatory treasury stock cancellation"—have been proposed consecutively in the National Assembly.
Yuhan, Boryung, Celltrion068270, etc., cancel treasury stocks in the first half
In the first half of this year, major pharmaceutical companies carried out their first or largest treasury stock cancellations since their inception. Treasury stock cancellation is a representative means of shareholder return that increases the value per share. In May, Yuhan canceled approximately 240,627 shares, or about 3.7% of its treasury stocks, worth 25.3 billion won for the first time, and plans to purchase an additional 20 billion won worth of treasury stocks within the next six months.
In February, Boryung canceled 1 million shares worth 10.2 billion won, the largest scale in its history. This accounts for approximately 1.2% of the total number of issued shares. Hugel also stated in its business report that it plans to cancel 200,000 to 500,000 shares by the end of the year. Celltrion completed the cancellation of 900 billion won worth of stock this year, following a 701.3 billion won cancellation last year. It also presented a goal to achieve a 40% shareholder return rate through cash dividends and treasury stock purchases by 2027.
According to the Financial Supervisory Service's Data Analysis, Retrieval and Transfer System (DART), there were a total of 45 cases of stock cancellation announced by KOSPI and KOSDAQ-listed companies from after the 21st presidential election until the 14th of this month, a 50% increase compared to the same period last year. The number of canceled shares was 145.27 million, and the total value was 5.8379 trillion won, representing increases of 256% and 164%, respectively, compared to the same period the previous year.
Yuhan and Hanmi Pharmaceutical128940 release 'Corporate Value Enhancement Plans'
Among the top five pharmaceutical companies, only Yuhan and Hanmi Pharmaceutical have specified plans for treasury stock cancellation through their "Corporate Value Enhancement Plans." In a plan announced last October, Yuhan stated that it would cancel a total of 1% of its outstanding shares by 2027, and pursue an average shareholder return rate of 30% or more and a dividend per share (DPS) increase of 30% or more between 2025 and 2027. Hanmi Pharmaceutical introduced a policy including a shareholder return rate of 25% or more, treasury stock acquisition and cancellation, and an expansion of interim dividends during the same period.
Until now, the pharmaceutical industry has faced less external pressure compared to other sectors like finance. This is because the proportion of institutional and foreign investors is low, and controlling families often hold high stakes, leading to relatively fewer demands for shareholder returns. Treasury stocks were also frequently used for purposes such as stock options.
However, the possibility of the situation changing has increased as bills for "mandatory treasury stock cancellation" have been proposed in the National Assembly. The bills stipulate deadlines for cancellation after acquisition—ranging from within one year (Rep. Kim Nam-keun), within six months (Rep. Cha Gyu-geun), to immediate (Rep. Kim Hyun-jung)—and include provisions allowing exceptions for stocks held for employee compensation purposes.
Kim Sang-bong, a professor of economics at Hansung University, analyzed, "There is a distinct polarization of value between companies in the pharmaceutical industry. Given that many companies developing new technologies are struggling with deficits, mandatory treasury stock cancellation is expected to have the effect of inducing the normalization of corporate value."