Peptron, a South Korean biotechnology company specializing in advanced materials manufacturing and pharmaceutical R&D, hit the daily lower price limit from the 9th after-market session through the 10th regular trading session. The stock closed at 111,600 won on the 10th, down 47,700 won or 29.94% from the previous day. The sharp decline followed CEO Choi Ho-il's comments at a bio forum held in Daejeon on the 9th, where his statements regarding the company's joint research with U.S. pharmaceutical company Eli Lilly were interpreted by the market as indicating that tirzepatide development had been transferred to another company. The stock drop occurred as Peptron approaches the expiration of its joint research period with Lilly on October 7, ahead of a potential main contract. Peptron's stock had reached a 52-week high of 392,500 won on November 20, but has since fallen to approximately one-quarter of that peak value.
Peptron Stock Falls to 111,600 Won on 10th Trading Session
According to the Korea Exchange on the 11th, Peptron closed at 111,600 won on the 10th, falling to the daily lower price limit of 47,700 won (29.94%) from the previous day. The stock also dropped to the lower limit during the NXT after-market session on the 9th following the close of regular trading. Peptron's stock had risen to an intraday high of 392,500 won on November 20, setting a 52-week high. The stock subsequently fluctuated between 200,000 won and 300,000 won before falling to one-quarter of its 52-week high level.
CEO Choi Ho-il Comments on Tirzepatide Research at Daejeon Bio Forum
At the bio forum held in Daejeon on the 9th, CEO Choi Ho-il stated, "We are jointly developing a completely different peptide formulation with L company (Lilly), and tirzepatide is not included. That (tirzepatide joint research) seems to be done with Camurus." Tirzepatide is the core ingredient in Lilly's diabetes and obesity treatments Mounjaro and Zepbound, and had been a key focus of market attention. The market had anticipated that applying Peptron's SmartDepot (long-acting drug delivery platform) technology to this substance could transform the market by changing the weekly administration of Mounjaro and Zepbound to monthly administration. Choi's remarks were interpreted as indicating that tirzepatide development had been transferred to another company, spreading concerns that the development had been discontinued. Investment industry sources view Choi's remarks as having sparked controversy due to omission of information subject to NDA (non-disclosure agreement). The actual interpretation should be that Lilly's evaluation of tirzepatide was already completed in 2023 through an MTA (Material Transfer Agreement), and subsequent substances are currently being jointly researched according to a contract signed in October 2024.
Peptron Issues Official Statement Clarifying Joint Research Scope
A Peptron official stated in an official statement on the morning of the 11th, "The ongoing joint research is not limited to a single specific commercialized product. Joint research on multiple substances, including next-generation obesity and diabetes treatment candidates and CNS (central nervous system, including Alzheimer's disease, Parkinson's disease, and alcohol use disorder) substances held by the global pharmaceutical company, is proceeding normally according to plan." The official added, "The perception that the value of the joint research has been significantly damaged or that obesity and diabetes treatment development has been effectively halted does not accurately reflect the full content and scope of the research. We are also proceeding with procedures to break ground on the Osong Second Factory, a production facility for commercialization of the SmartDepot platform and expansion of global production capacity, targeting September of this year."
FAQ
What caused Peptron stocks to fall on the 10th?
Peptron stocks fell to the daily lower price limit on the 10th, closing at 111,600 won, down 29.94% from the previous day. The decline was triggered by CEO Choi Ho-il's comments at a bio forum in Daejeon on the 9th, where he stated that tirzepatide is not included in the joint research with Eli Lilly. The market interpreted these remarks as indicating that tirzepatide development had been transferred to another company.
What did Peptron say in its official statement on the 11th?
In an official statement released on the morning of the 11th, Peptron clarified that the ongoing joint research with the global pharmaceutical company is not limited to a single product. The company stated that joint research on multiple substances, including next-generation obesity and diabetes treatment candidates and CNS substances, is proceeding normally according to plan. Peptron also confirmed that construction of the Osong Second Factory is proceeding with a target groundbreaking date in September.
When did Peptron stocks reach their 52-week high?
Peptron stocks reached a 52-week intraday high of 392,500 won on November 20. Following that peak, the stock fluctuated between 200,000 won and 300,000 won before falling to 111,600 won on the 10th, approximately one-quarter of the 52-week high value.
