D&D Pharmatech shares hit the upper limit (the top of the daily price band) during trading on the 22nd. It is seen as due to reports that U.S. drugmaker Pfizer (PFE) will acquire obesity drug developer Metsera (MTSR).
D&D Pharmatech transferred its GLP-1 (glucagon-like peptide-1) platform to Metsera and has been conducting clinical trials in North America.
D&D Pharmatech stock was trading at 214,500 won on the KOSDAQ market at 1:35 p.m. that day. The share price rose 29.29% (48,600 won) from the previous session. During intraday trading, the price climbed to as high as 215,500 won, marking a new all-time high.
D&D Pharmatech shares were sluggish around 160,000 won in the morning, but they surged as investors flocked to the high valuation Pfizer presented for the Metsera takeover.
The Financial Times (FT) reported that Pfizer plans to acquire Metsera for up to $7.3 billion (about 10.1 trillion won). It said Pfizer would pay $47.5 in cash per share and an additional $22.5 upon achieving milestones, with an official announcement expected as early as that day. This is more than 40% higher than Metsera's closing price of $33.32 on the 19th.
The Financial Times explained that after Pfizer's own obesity treatment candidate failed in clinical trials, it moved to secure a promising pipeline externally.