Ildong Pharmaceutical decided to sell all of the D&D Pharmatech equity it acquired in kind just one month ago.
According to the industry on the 9th, Ildong Pharmaceutical decided at its board meeting on the 6th to dispose of all 53,023 shares of D&D Pharmatech (0.49% equity) on the open market. The planned disposal amount is about 15.85387 billion won, which is equivalent to 10% of the company's equity capital (159.0576 billion won). The sale will proceed sequentially depending on market conditions from Nov. 7 to Feb. 6 next year.
D&D Pharmatech is developing treatments for obesity, metabolic diseases, and degenerative brain diseases based on "ORALINK," a platform that increases the oral absorption of peptide (small protein fragments) medicines. The technology is regarded as a core technology that enables the glucagon-like peptide (GLP)-1 class of obesity drugs, which are drawing attention in the global market, to be taken in pill form instead of injections. The company exported its ORALINK technology to Metsera, a U.S. obesity drug developer.
Ildong Pharmaceutical earlier received the equity in kind on Oct. 1 as part of the maturity liquidation of the "Qdus Family No. 3 New Technology Business Investment Partnership." The company invested 3 billion won in this fund in 2021, and when the partnership was dissolved, it was allocated D&D Pharmatech shares it had held. The acquisition amount at the time of disclosure was about 10.65623 billion won (201,000 won per share).
With D&D Pharmatech's share price surging over the past month, Ildong Pharmaceutical has secured an appraisal gain of about 50%. Applying the disclosed sale price per share (299,000 won) yields a profit of about 5.2 billion won, amounting to a 49% return in just one month by simple calculation.
D&D Pharmatech's share price jumped sharply on the back of steady clinical progress of the obesity treatment out-licensed to the U.S. company Metsera and news of acquisition competition among multinational pharmaceutical companies over Metsera.