Alphabiz - Summit Biotech CEO Linked to S-PASS Patent Previously Convicted of Insider Trading

Photo courtesy of Yonhap News

[Alpha Biz= Kim Jisun] The CEO of Summit Biotech, who filed the patent for Samchundang Pharm’s core oral drug delivery platform S-PASS, has previously been convicted of securities law violations in Taiwan, according to a local media report.

Citing court documents, Seoul Economic Daily reported on April 8 that CEO Heo Jang-san was sentenced in 2020 by a Taiwanese court to one year and eight months in prison, suspended for two years, for insider trading. The court also ordered the confiscation of approximately TWD 541,605 (about KRW 25 million) in illicit gains.

The case stemmed from a 2018 contract between Samchundang Pharm and Taiwanese CDMO firm Mycenax Biotech for Phase 3 clinical trials and commercial production of a biosimilar to Eylea. Heo allegedly brokered the deal and received more than TWD 10 million (around KRW 500 million) in fees under a confidentiality agreement.

Investigators later found that Heo had privately purchased shares in a related company between July and September 2018 and sold them shortly after the contract announcement, profiting from non-public information. Another individual who obtained insider information through Heo was also convicted and received a similar suspended sentence.

During the trial, testimony indicated that Samchundang Pharm executives, including CEO Jeon In-seok and an external advisor, were actively involved in negotiations from an early stage. According to witnesses, discussions with Mycenax progressed rapidly, with frequent visits and close coordination leading to the contract’s finalization in June 2018.

Heo is also listed as the applicant for the S-PASS patent, filed in June 2024 under the title “Biological complex, micelle complex derived therefrom, and manufacturing method.” Regarding Summit Biotech, Samchundang Pharm has previously stated that the entity functions as one of its overseas research partners and that it fully funds all development costs related to the S-PASS platform.

Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)