[Edaily Reporter KIM SUNG-JIN ] Peptron ( Peptron, Inc.(087010)) issued a statement on the 8th regarding the conclusion of its platform technology evaluation with Eli Lilly without a commercialization agreement, stating, “Although a follow-up commercialization agreement was not signed at the time the technology evaluation concluded, it is not appropriate to interpret this as the follow-up commercialization agreement having ‘fallen through.’”
Peptron, Inc. explained, “What concluded on the 7th was the joint research and technology evaluation process conducted under the technology evaluation agreement signed with Eli Lilly,” adding, “The joint research and technology evaluation between the two companies were completed normally within the contract period, and we have received all payments stipulated in the technology evaluation agreement. All joint research and contractual procedures under the technology evaluation agreement were properly carried out and completed.”
The company continued, “In order to translate the results of this joint research and technology evaluation into actual commercialization, a comprehensive review of various factors necessary for actual product development and commercialization—such as commercial viability, mass-production feasibility, market potential, and intellectual property rights—as well as decision-making by both companies is required.”
Earlier, on the afternoon of the 7th, Peptron, Inc. announced, “The technology evaluation period for the ‘SmartDepot’ platform, which we have been conducting with Eli Lilly, has ended as of today,” adding, “We take it very seriously that we were unable to announce the signing of a follow-up commercialization agreement upon the conclusion of the technology evaluation period.”
The market interpreted this outcome as effectively meaning that the main contract with Eli Lilly had fallen through, and Peptron, Inc.’s stock price plummeted 25.8% in after-hours trading that same day.
Peptron, Inc.’s SmartDepot is a long-acting drug delivery technology that uses peptide drugs and the biodegradable polymer PLGA to create microspheres, enabling the drug to be slowly released within the body. It has garnered significant attention for its ability to extend the dosing interval for drugs that must be administered daily or weekly to as infrequently as once a month.
In particular, what drew significant market interest in this joint research with Lilly was the potential for a once-monthly formulation of GLP-1 class peptides, which are used as obesity treatments. Peptron, Inc. previously explained that in July of this year, it validated a once-monthly formulation of a GLP-1 compound through its joint research with Lilly and is now expanding this approach beyond obesity and diabetes to include conditions such as Alzheimer’s disease and Parkinson’s disease.
The collaboration between Peptron, Inc. and Lilly began in October 2024. It was a technology evaluation agreement to explore whether Peptron, Inc.’s SmartDepo platform could be applied to Lilly’s peptide drugs to develop long-acting formulations.
Peptron, Inc. stated, “We will continue to strive to ensure that the results accumulated through this joint research and technology evaluation translate into the commercial value of the SmartDepo platform and can be applied to our partner’s future commercialization efforts.”
