[Edaily Reporter Kim Jinsoo ] D&D Pharmatech Inc.’s stock price fell sharply after it was confirmed that research and development on an obesity treatment candidate incorporating D&D Pharmatech Inc.(347850)’s technology had been suspended. In particular, following doubts raised about the technology evaluation agreement between Peptron, Inc.(087010)and Eli Lilly, this latest news has shaken expectations regarding the development of an obesity treatment utilizing K-Bio technology.

DONGWOON ANATECH CO.,LTD.(094170)D&D Pharmatech’s stock price rose on expectations following news of the company’s application for a clinical trial plan to develop a saliva-based blood glucose monitor and its upcoming announcement of clinical results.

D&D Pharmatech Inc. Down 18%… “Not a Technical Issue, Partnership Remains Strong”

According to KG Zeroin MP Doctor (formerly Marketpoint), D&D Pharmatech Inc.’s stock price closed at 53,100 won today

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down 18.06% from the previous day. The decline in D&D Pharmatech Inc.’s stock price is believed to be due to news that Metcera has halted development of its obesity treatment pipeline.

According to the pharmaceutical and biotech industry, Pfizer announced on the 4th in its second-quarter earnings report that it had halted development of “MET-224o,” a candidate drug utilizing D&D Pharmatech Inc.’s oral peptide platform “ORALINK.”

In 2023, D&D Pharmatech Inc. licensed six oral obesity treatment candidates to Metcera for $803.5 million (approximately 1.145 trillion won), after which Metcera was acquired by Pfizer. MET-224o is a glucagon-like peptide-1 (GLP-1) receptor agonist that utilizes D&D Pharmatech Inc.’s ORALINK platform. Although Pfizer had been directly responsible for the development of MET-224o following its acquisition of Metcera, development has been halted due to strategic changes and other factors. Pfizer stated, “We will continue our GLP-1 drug discovery efforts using oral peptides and small-molecule compounds.”

As D&D Pharmatech Inc.’s stock price plummeted following the news, the company moved to reassure investors, stating, “This suspension does not indicate any technical issues with Oralink, nor does it imply any problems with the partnership.”

According to D&D Pharmatech Inc., while comments are limited due to confidentiality obligations, Pfizer—as a latecomer to the obesity treatment market—is focusing its development efforts on products that differentiate themselves from existing approved treatments. Specifically, in the area of oral peptides, the company is prioritizing multi-agent formulations that offer greater weight-loss effects than single GLP-1 agents.

A D&D Pharmatech Inc. official explained, “There were two oral products that had entered clinical trials during the joint development phase, and the strategy to proceed with additional clinical trials for only one of them following the initial trials had been disclosed even before the acquisition.” The official added, “The fact that one of these products is included in the current development suspension program is entirely foreseeable as an extension of the existing development strategy.” The two pipeline candidates mentioned by D&D Pharmatech Inc. are “MET-224o” and “MET-097o.”

He went on to explain, “Considering that Pfizer has announced it will continue developing peptide-based oral GLP-1 drugs, this is merely a strategic shift toward more competitive products—it is not a problem with Oralink’s technology. If it had been a technical issue, we would not have developed follow-up products based on the same technology.”

Finally, he said, “Since the change in partner, we have been actively cooperating on the new development strategy, and collaboration at the discovery stage is also proceeding actively. As a partner for next-generation obesity treatments, the scope of our collaboration is expanding.”

The market’s sensitive reaction to this news is believed to stem from previous controversy surrounding the technology evaluation agreement between Peptron, Inc. and Eli Lilly for obesity treatments. Choi Ho-il, CEO of Peptron, Inc., mentioned at a biotech forum last month, “We are developing a different peptide formulation with Lilly, and turzepatide is not included.”

Terzepatide is an active ingredient in the obesity treatment “Mounjaro.” While the market had previously held high expectations for the development of a once-monthly formulation of Mounjaro incorporating Peptron, Inc.’s technology, CEO Choi’s remarks raised questions about the platform technology evaluation agreement with Lilly, which is based on a Material Transfer Agreement (MTA).

An industry insider stated, “Since obesity treatments are currently the most closely watched topic, the market is reacting strongly to every piece of news,” adding, “We need to continue to closely monitor developments.”

DONGWOON ANATECH CO.,LTD., ‘D-Sell Life’ Development Gains Momentum… Stock Price Rises on Optimism

On that day

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ANATECH CO

.,LTD

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stock

price closed at 32,000 won, up 15.52% from the previous day. The rise in DONGWOON ANATECH CO.,LTD.’s stock price is attributed to growing optimism as development of the saliva-based blood glucose monitor “D-Sell Life” gains momentum.

According to DONGWOON ANATECH CO.,LTD., the company submitted an application for approval of its clinical trial protocol to the Ministry of Food and Drug Safety last week to secure regulatory approval for ‘D-Salife.’ Since ‘D-Salife’ is classified under both in vitro diagnostic medical devices and digital medical devices, DONGWOON ANATECH CO.,LTD. plans to conduct two separate clinical trials.

Furthermore, the results of a clinical trial currently underway at the UCLA School of Dentistry are scheduled to be announced next month. This study will verify how accurately ‘D-Sell Life’ detects glucose in saliva and whether there are any discrepancies between the saliva glucose levels measured by the device and actual blood glucose levels.

D-Sellife is a medical device that measures blood glucose by detecting glucose in saliva; since it does not require a blood draw, it is expected to be a game-changer if launched on the market.

An official from DONGWOON ANATECH CO.,LTD. stated, “The pilot clinical results for D-Sellife are scheduled to be unveiled at the Asian Salivary Gland Research Society (ASGRS) International Symposium in September,” adding, “It appears that market expectations regarding its development—including the recent submission of a clinical trial plan to the Ministry of Food and Drug Safety—have been reflected in the stock price.”