[Edaily Reporter KIM SAE-MI ] D&D Pharmatech Inc.(347850)has secured an additional order from U.S.-based Pfizer related to the development of an oral obesity treatment formulation. Although the increase in the contract value amounted to only approximately 700 million won, it is noteworthy that Pfizer continues to utilize D&D Pharmatech Inc.’s research and development (R&D) capabilities on a paid basis during the follow-up development of the assets it acquired through technology transfer.

Contract Period Extended for Additional Order… Why Was the Term “Dual-Action Agent” Omitted?

According to the Financial Supervisory Service’s Electronic Disclosure System on the 15th, D&D Pharmatech Inc. issued a corrected disclosure on the 14th regarding the research and development contract signed with Pfizer for the formulation of an oral peptide obesity treatment. Following Pfizer’s additional order, the contract value increased by 37.9%, from 1,832,670,000 won to 2,526,580,000 won. The scheduled contract end date was also extended by approximately 15 months, from November 30 to February 29, 2028.

Some observers have suggested that the development schedule may have been delayed, noting that the increase in the contract amount was not significant relative to the approximately 15-month extension of the contract period. As these concerns spread through the market, D&D Pharmatech Inc.’s stock price fell by around 7% on the 14th.

However, based on the details of the public disclosure, it is difficult to interpret this contract extension as a simple development delay. This is because the reason for the correction was specified as a “change in the contract amount due to additional orders from the client,” rather than a change in the development schedule. It is understood that as Pfizer added research items to be performed by D&D Pharmatech Inc. during the subsequent development process, both the contract amount and the expected duration were adjusted accordingly.

Payment will be received within 90 days after the completion of each research service item. This is not a technology transfer agreement involving advance payments or milestones; rather, it is structured such that D&D Pharmatech Inc. performs the R&D tasks requested by Pfizer and receives service fees accordingly.

Another notable aspect of this amendment is that the term “dual-action agent” has been removed from the contract title. The original contract title was “Development of an Oral Peptide Dual-Action Agent Formulation for Obesity Treatment,” but following the amendment, it was changed to “Development of an Oral Peptide Formulation for Obesity Treatment.”

In light of this, some market observers have speculated that D&D Pharmatech Inc. may have been tasked with developing oral formulations for substances other than “MET-875o,” the oral GLP-1/GIP dual agonist for which it is presumed to be performing services for Pfizer.

However, based solely on the information currently disclosed, there is no clear evidence to suggest that additional target compounds have been added or that the scope of research has been expanded to include other candidate compounds. Rather, it is highly likely that the contract title was adjusted to a more general term to prevent the mechanism of action of a specific candidate compound and Pfizer’s development strategy from being disclosed in excessive detail.

The specific disclosure structure of the contract also plays a role in this corrective disclosure. Since the initial research service contract amount exceeded 10% of D&D Pharmatech Inc.’s most recent annual revenue, it became subject to disclosure as a single sales and supply contract. Subsequently, whenever Pfizer places additional research orders and the total service fee changes, D&D Pharmatech Inc. is required to issue a corrective disclosure regarding the amendments to the existing contract.

A D&D Pharmatech Inc. official stated, “We have no official comment to make regarding this disclosure.”

Why Does Pfizer, Which Has Its Own R&D Organization, Continue to Outsource Research to D&D Pharmatech Inc.?

The biotech industry interprets this additional order as a sign that Pfizer is continuing the follow-up development of assets it acquired through technology transfer from D&D Pharmatech Inc.

According to a comprehensive report by Edaily, D&D Pharmatech Inc. played a broad role in R&D—including candidate compound discovery and formulation development—even after the technology transfer during its collaboration with Metcera. It acted on behalf of Metcera—which lacked a sufficient in-house drug discovery organization—by performing some discovery and follow-up development tasks and billing Metcera for the associated costs. As a result, D&D Pharmatech Inc. consistently generated revenue from these services through its research collaboration with Metcera from 2023 to 2025.

Unlike Metcera, Pfizer is a global pharmaceutical company with its own research organization capable of handling everything from candidate drug discovery to clinical development. Following the acquisition of Metcera, there were concerns that Pfizer might conduct all related development in-house and that the research collaboration with D&D Pharmatech Inc. might end.

However, even after the acquisition, Pfizer has continued to pay D&D Pharmatech Inc. separate fees and has entrusted the company with some follow-up development work on existing technology transfer assets. It is understood that whenever D&D Pharmatech Inc.’s formulation technology or research expertise is needed during the development process, Pfizer commissions the work in the form of separate research contracts.

Typically, after a technology transfer, the acquiring company leads the development of candidate compounds, while the original developer is responsible for providing technology transfer support as specified in the contract. If the acquiring company—which has its own R&D organization—continues to outsource research work to the original developer while paying additional fees, it is likely that the company has determined there is value not only in the platform itself but also in the original developer’s experience and know-how in applying it to individual candidate compounds.

D&D Pharmatech Inc.’s OralLink is a platform designed to develop peptide drugs, which are typically administered via injection, into oral formulations. Among the company’s publicly disclosed pipeline, MET-002o is the first prototype to utilize OralLink. D&D Pharmatech Inc. has pursued a strategy of applying the clinical formulation secured through this process to subsequent oral GLP-1 candidates, such as MET-224o and MET-097o.

Oral peptide drugs must prevent the active ingredient from being degraded in the gastrointestinal tract while ensuring that a sufficient amount is absorbed into the body. Even for peptides in the same class, the formulation and manufacturing process must be optimized individually according to the characteristics of each candidate drug; therefore, the formulation research experience of the original developer who created the platform can be leveraged in subsequent studies required for clinical entry.

A biotech industry official stated, “It is not common for a company that has licensed a technology to pay additional fees to the original developer to conduct follow-up research, even when it has its own research organization,” adding, “This can be interpreted as the company recognizing that not only the technical value of the platform but also the original developer’s experience and know-how in optimizing formulations for individual candidate compounds are essential for development.”