Kiwoom Securities noted on the 3rd that Ildong Pharmaceutical's stock sharply dropped due to excessive concerns, but that those concerns could be alleviated depending on data released at the end of this month.
The previous day, Ildong Pharmaceutical's stock fell by 6.76% following news of the partial suspension of Eli Lilly's oral obesity treatment candidate, and it even dropped 16.16% during intraday trading. This was due to expanding concerns over Ildong Pharmaceutical's candidate, which is estimated to have a similar structure.
Heo Hyemin, a researcher at Kiwoom Securities, said, "Eli Lilly's decision appeared to be a strategic choice based on the success of other treatments, yet it seems to have reacted sensitively to the news of the clinical suspension," adding that "the phase 1 data for the candidate substance being developed by Ildong Pharmaceutical will be announced on the 29th."
He further explained, "Concerns about Ildong Pharmaceutical will also ease upon the announcement of positive data regarding safety and efficacy. As global big pharma faces pressure on revenue, if a low-molecular-weight oral obesity treatment that is easy to mass-produce secures efficacy and safety, the demand for technology adoption will still remain high."