[Edaily Reporter KIM SAE-MI ] “We’ve compiled and submitted all the necessary data; now it’s up to them to make a decision.”
This was a statement made last July by Choi Ho-il, CEO of Peptron, Inc.(087010), regarding the possibility of a follow-up agreement with Eli Lilly. However, approximately three months later, on the 7th, Peptron, Inc. and Lilly’s two-year technology evaluation agreement ended without a follow-up commercialization agreement.
While the company stated, “It is not appropriate to interpret this as a ‘failure’ to secure a follow-up commercialization agreement,” it was unable to provide specifics regarding the form or timing of any future agreement. As expectations for the “Lilly master agreement”—which had been the key driver behind Peptron, Inc.’s rising enterprise value over the past two years—have been shaken, investors’ attention is now focused on CEO Choi’s response and future moves. CEO Choi’s current whereabouts remain unknown.
“Only Lilly’s decision remains” → “Review of commercialization collaboration to proceed”Previously, in October 2024, Peptron, Inc. signed a technology evaluation agreement to apply its long-acting drug delivery platform, “SmartDepo,” to peptide compounds owned by
Lilly. The evaluation period, originally scheduled for approximately 14 months, was extended to a maximum of 24 months at the end of last year.
The market had expected follow-up commercialization agreements—such as technology transfers or licensing agreements—to be announced around October 7 of this year, when the technology evaluation was set to conclude.
These expectations were fueled by remarks made by CEO Choi. Last July, he stated, “We have generated and submitted all the necessary data; now it’s up to them to make a decision.” This was interpreted to mean that the submission of data required for technical validation had effectively been completed and that the final decision-making authority had shifted to Lilly.
However, the technology evaluation on the 7th concluded without a commercialization agreement. Peptron, Inc. announced via a notice at 4:00 p.m. that same day that the technology evaluation with Lilly had ended. In particular, the statement that “reviews and discussions regarding future commercialization cooperation will be conducted by comprehensively considering all factors necessary for actual commercialization, based on the results of joint research and technology evaluations accumulated to date” heightened investors’ disappointment.
Since the statement described follow-up commercialization discussions as “scheduled to take place” rather than “currently underway,” concerns quickly spread that concrete negotiations for a formal agreement had not yet begun in earnest. As a result, Peptron, Inc.’s stock price plummeted 25.80% in after-hours trading, closing at 96,900 won.
Subsequently, some shareholders visited the company’s office in Munjeong-dong, Seoul, and its headquarters in Daejeon to demand an explanation from company executives regarding the status of the follow-up contract. In response, Peptron, Inc. issued an additional announcement the following day, on the 8th, clarifying, “Although a follow-up commercialization agreement was not signed at the conclusion of the technology evaluation, it is inappropriate to interpret this as a failure to reach such an agreement.”
However, even in this additional notice, the company merely explained that a decision by both parties would be necessary after a comprehensive review of commercialization potential, mass-production feasibility, marketability, and intellectual property (IP). This was insufficient to quell market anxiety. Ultimately, Peptron, Inc.’s stock price fell to the daily price limit that day.
The company’s explanation contrasts with CEO Choi’s statement last July that “data delivery is complete, and only Lilly’s decision remains.” Some have pointed out that if further review of commercialization potential is still needed even after the technology evaluation has concluded, his remarks at the time may have instilled excessive expectations in the market regarding the imminent signing of a main contract.
“Lilly Expectations” Nurtured Over Two Years… Now Is the Time to Prove It with ResultsThe collaboration with Lilly was the key driver behind Peptron, Inc.’s rising valuation. Since 2023, Peptron, Inc.’s stock price has at one point surged more than 50 times from its low. In particular, expectations that applying SmartDepo to Lilly’s obesity and diabetes treatments could extend the dosing interval to once a month were heavily reflected in the company’s valuation.
However, cracks began to appear last July when CEO Choi made remarks suggesting that tirzepatide was not included in the scope of the joint research. Although the company later issued a clarification, Peptron, Inc.’s stock price hit the daily lower limit. At the time, the market raised doubts as to whether CEO Choi’s remarks were a simple slip of the tongue or whether they reflected, to some extent, the results or atmosphere of the ongoing technology evaluation.
Organizational changes that occurred around the same time are also worth noting. Senior Vice President Yoo Seong-yeol, who had overseen global business development (BD)—including communications with Lilly—left the company last July. As the two-year technology evaluation with Lilly was entering its final stages, the departure of the head of BD—who had served as the key point of contact—prevented market doubts regarding the progress of the follow-up contract from easily subsiding.
Attention is also focused on CEO Choi’s movements around the time the technology evaluation concluded. Rumors have been circulating in the biotech industry that CEO Choi has not been reporting to the Daejeon headquarters for several days. When Edaily asked about CEO Choi’s whereabouts on the 8th, the company responded, “It is true that he is not in Daejeon right now,” but added, “We are not sure of his exact location.” The company also declined to comment on whether CEO Choi was on a business trip to Europe.
Coincidentally, the global pharmaceutical and biotech exhibition “CPHI Milan 2026” was held in Milan, Italy, from the 6th to the 8th. While it was reported that Peptron, Inc.’s business development staff attended the event, CEO Choi’s attendance could not be confirmed. It remains unclear whether CEO Choi was actually on an overseas business trip and, if so, whether the purpose of the trip was related to follow-up business development with Lilly or other global pharmaceutical companies.
The challenge now facing CEO Choi is to prove SmartDepo’s commercial value through actual contracts, rather than mere “potential.” Whether he continues follow-up negotiations with Lilly or expands partnerships to other global pharmaceutical companies, the market is now demanding results rather than just expectations. With the “Lilly story”—which has driven up Peptron, Inc.’s enterprise value over the past two years—now on hold, all eyes are on CEO Choi to see what concrete results he will deliver to address the market’s skepticism.
◇Choi Ho-il, CEO of Peptron, Inc.: Biography
△Born September 28, 1966
△B.S. in Biochemistry, Yonsei University
△ Master’s and Ph.D. in Biochemistry, Yonsei University Graduate School
△ September 1990 – May 1992: Researcher, Korea Research Institute of Bioscience and Biotechnology
△May 1992–October 1997: Researcher, LGCHEM,LTD Biotech Research Institute
△November 1997: Founded Peptron, Inc.
△November 1997–Present: CEO, Peptron, Inc.
