Hanyang Securities on the 24th said a license-out (technology transfer) deal for Ildong Pharmaceutical's oral obesity treatment is expected. Based on clinical trial results superior to competitors, expectations are that it can take the lead in the obesity drug market, and a bullish outlook for the stock price was also presented.
Ildong Pharmaceutical on the 29th disclosed the full phase 1 clinical data for its oral obesity treatment "ID110521156." In the 200 mg cohort, the highest dose, a 9.9% weight loss effect was confirmed in four weeks, and on a four-week basis this surpasses Eli Lilly's orforglipron and Roche's "CT-996," competing drugs. Along with the high weight loss effect, an increase in lean body mass was observed, raising expectations for an efficacy that sheds fat without reducing muscle.
However, separate from the new drug's efficacy, the stock price is still bottoming out. The current share price is about 40% below its peak. It appears that momentum has faded after the clinical results were announced, and stocks in the obesity sector have been weak.
Oh Byung-yong, an analyst at Hanyang Securities, said, "Ildong Pharmaceutical's market capitalization is 651.7 billion won, and we view this as a good investment opportunity," adding, "With excellent clinical trial data secured, confidence in an overseas license-out is higher than ever."
There is a possibility that Ildong Pharmaceutical's oral obesity treatment license-out could come as early as this year. Negotiations are underway with multiple corporations, and the fact that competitors are facing difficulties in developing oral obesity treatments is also positive.
Oh said, "Oral obesity treatments will ultimately become a game changer in obesity drugs," adding, "Naturally it will become a global trend, and the share prices of oral drug developers are likely to continue trending upward."