[Edaily Reporter KIM SAE-MI ] Peptron, Inc.(087010), following its official statement that its joint research with Eli Lilly is proceeding normally, issued a revised notice around 12:00 p.m. today explaining that tirzepatide is included in the scope of the joint research. However, E-Daily’s investigation confirmed that within the company, Tirzepatide is understood to have been included in a past Material Transfer Agreement (MTA) but is currently excluded from the joint research scope. This aligns with remarks made the previous day by CEO Choi Ho-il in a public setting, in which he stated that “Tirzepatide is not part of the joint research but was the subject of a past MTA.” Conversely, the company’s revised announcement allows for a different interpretation, which is actually increasing market confusion.

CEO Choi Ho-il’s “Terze Not Included” Remarks… But Included in Revised Notice?

According to a comprehensive report by Edaily on the 10th, it has been confirmed that Peptron, Inc. recognizes Terzepatide as a substance subject to discussion, as it is included in the scope of a previously signed Material Transfer Agreement (MTA), even though it is not currently included in the joint research agreement with Lilly.

In its initial statement released that morning, Peptron, Inc. stated, “Joint research on multiple compounds, including next-generation obesity and diabetes treatment candidates and central nervous system (CNS) compounds held by a global pharmaceutical company, is proceeding normally according to plan.” This phrasing could be interpreted to mean that the company is researching multiple compounds, including Tuzepatide, or that it is researching next-generation compounds other than Tuzepatide.

Later that day, around noon, Peptron, Inc. revised its statement, saying, “The joint research is not limited to the single product mentioned at the forum; joint research on next-generation obesity and diabetes treatment candidates, as well as multiple substances—including those targeting the central nervous system (CNS)—is currently underway.”

There is a strong possibility that the phrase “the product mentioned at the forum” refers to turzepatide. In response, the company confirmed that this interpretation is correct, effectively retracting CEO Choi’s earlier statement that “turzepatide is not included.”

However, within the company, there is still an interpretation that CEO Choi’s remarks meant that while Turzepatide was the subject of a past MTA signed with Lilly, it was not included in the scope of a separate joint research agreement. This contradicts the company’s revised announcement and is fueling confusion.

The company maintains that it is difficult to make any further official comments regarding the specific scope and target compounds of the MTA and the joint research agreement due to confidentiality obligations with Lilly.

Why Is Tuzepatide, Covered by the MTA, Excluded from the Joint Research Scope?

A biotech industry insider familiar with Peptron, Inc.’s internal affairs explained, “I understand it is true that Tuzepatide is not included among the multiple compounds currently under joint research with Lilly,” adding, “It is covered under a Material Transfer Agreement (MTA) rather than the joint research agreement.”

The source added, “In a broad sense, Tuzepatide is included, but it seems CEO Choi’s remarks implied that it is not part of the joint research,” noting, “Whether it’s an MTA or a joint research project is a difference in contractual methodology; ultimately, the counterparty is the same.”

Although Peptron, Inc. received the raw material from Lilly after signing an MTA in October 2024 and conducted tests using SmartDepo, the substance subject to the joint research is a separate, undisclosed substance distinct from Tuzepatide. Typically in the biotech industry, companies first sign a non-disclosure agreement (NDA/CDA), then exchange materials via an MTA to verify feasibility, and subsequently proceed to a joint research and technology evaluation agreement and a master license agreement.

If the company received Turzepatide and even conducted tests to apply it to SmartDepo but subsequently excluded it from the joint research scope, the reason behind this decision is key. The implications vary significantly depending on whether the company has completed the necessary technology evaluation and is simply awaiting Lilly’s commercialization decision, whether the compound was excluded from further development based on the evaluation results, or whether the priority of next-generation candidate compounds has increased. The company has not yet disclosed the reason.

Possibility of Re-emerging as a Licensing Candidate Despite Not Being Included in Joint Research

A Peptron, Inc. official stated, “Ultimately, what the market will focus on is whether Terzepatide is included in the October licensing-out list,” adding, “It is true that we developed a once-monthly formulation of Terzepatide for Lilly and submitted it to them, and the compound is included in the list of candidates to be reviewed for future licensing.”

It also requires further verification as to whether it is common for a contract structure to allow a compound evaluated under an MTA to be excluded from subsequent joint research but then re-emerge as a candidate during the licensing review stage.

However, according to some industry sources familiar with the negotiation process between Peptron, Inc. and global pharmaceutical companies, the contract with Lilly was reportedly not structured from the outset to be based on a single specific compound. Novo Nordisk, which approached Peptron, Inc. before Lilly, proposed terms that imposed strict restrictions on the SmartDepo technology and production, leading to a breakdown in negotiations; Lilly, on the other hand, is said to have offered more flexible terms than Novo Nordisk. However, it is also reported that Lilly intended to use the platform evaluation agreement to determine whether to enter into a main contract and did not have a specific substance, such as turzepatide, in mind. In other words, even if a main contract is signed, the choice of which substance to use will be up to Lilly.

In fact, the agreement between Peptron, Inc. and Lilly announced in October 2024 was not for a specific product but a non-exclusive platform technology evaluation agreement to apply SmartDepo to multiple peptide drugs owned by Lilly. The specific products under development were not disclosed, and the structure called for reviewing a subsequent commercial license based on the evaluation results.

An industry insider noted, “In a platform agreement, the initial evaluation compounds, the compounds currently under intensive research, and the compounds ultimately selected for licensing may not necessarily be the same,” adding, “Even if 터제파타이드 is currently excluded from the joint research scope, we cannot conclusively state that the possibility of Lilly selecting it as a compound for a future main agreement has completely disappeared.”