With U.S. pharmaceutical company Pfizer (PFE) acquiring obesity drug developer Metsera (MTSR), an assessment emerged that D&D Pharmatech stands to benefit from the partnership effect.
Heo Hye-min, a Kiwoom Securities researcher, said in a report on the 23rd, "More important than a simple corporations valuation is the significance of the partnership between D&D Pharmatech and Pfizer."
Pfizer decided to acquire Metsera for up to $7.3 billion. It will pay $47.5 per share and, if clinical trial success and other milestones are achieved, pay an additional $22.5 per share. Researcher Heo said, "Because the transaction detailed terms (CVR) do not include the oral formulation pipeline, it can be valued at the initial corporations value of $4.9 billion (about 6.8 trillion won)."
Heo explained that what is more important is that a technology transfer effect occurred from D&D Pharmatech to Metsera and then to Pfizer. D&D Pharmatech transferred its GLP-1 (glucagon-like peptide-1) platform to Metsera and has been conducting clinical trials in North America.
Heo said, "This is the second time after Celltrion's Remsima case in the past," adding, "Pfizer, despite being a latecomer, has experience securing market leadership." He added, "In effect, the oral platform technology was transferred to a big pharma (a large pharmaceutical company) with a high level of understanding of oral obesity treatments."
Heo predicted that this case will have a positive impact on investor sentiment toward early-stage bio corporations going forward. He said, "As we approach year-end, many major conferences are scheduled, and as the number of technology transfer deals typically increases in the fourth quarter, the likelihood of mergers and acquisitions (M&A) occurring grows, so if momentum arises for the time being, we expect upside elasticity to be strong."