[Special Stock] Ildong Pharmaceutical Splits Research Institute to Catch 'Two Rabbits'... Increased Value of New Drug Development Pipeline

Ildong Pharmaceutical is showing strength. Securities firms' analysis that profitability improvement is possible following the decision to split the research institute appears to be influencing the stock price.

As of 1:45 PM on the 14th, Ildong Pharmaceutical is trading at 22,250 KRW, up 11.75% from the previous day.

Last month, Ildong Pharmaceutical decided to spin off its research and development organization into a newly established corporation tentatively named "Unovia." Unovia is expected to have easier access to funding and be able to focus on research and development with the raised investment capital. Myungseon Lee, a researcher at DB Financial Investment, explained, "Ildong Pharmaceutical will be able to concentrate on improving its core pharmaceutical business performance separately," adding, "The spin-off company will be established in November, and most of the research and development organization and achievements will be transferred."

He continued, "Unovia has four major clinical pipelines," and analyzed, "Among them is IDG16177, a type 2 diabetes treatment currently in Phase 1 clinical trials in Germany since 2021." He further added, "It works by activating the G protein-coupled receptor GPR40 in beta cells to induce insulin secretion and regulate blood sugar levels," and "It is being developed as a First-In-Class drug."

The researcher also introduced, "There is also a non-alcoholic steatohepatitis (NASH) treatment (ID119031166) currently in Phase 1 clinical trials in the United States," explaining, "It activates the farnesoid X receptor (FXR) in hepatocytes and the ileum to regulate bile acid homeostasis, and induces anti-fibrotic and anti-inflammatory effects."

He explained, "There is a gastrointestinal disorder treatment (ID120040002) currently in Phase 1 clinical trials domestically, and a GLP-1-based oral treatment for type 2 diabetes/obesity (ID110521156) that recently received IND approval for Phase 1 clinical trials in Korea," adding, "There is also Venadaparib, an anticancer drug whose rights were transferred to Idience in 2019."

The researcher analyzed, "Idience aims for a KOSDAQ technology special listing next year," and "The newly established drug development spin-off company Unovia, which will be spun off in November, will require more than 100 billion KRW annually for research and development." He continued, "Appropriate funding will be necessary," and "Considering the current four clinical pipelines and those to be added soon, securing research and development funds is urgent."

He explained, "At least domestically, there is no venture company with such a diverse new drug pipeline," emphasizing, "It is necessary to pay attention to the value of the pipeline." He advised, "Recently, Ildong Pharmaceutical's stock price surged due to rumors of a technology export contract for the GLP-1-based obesity treatment development and Unovia's pipeline," adding, "Since corporate value changes according to actual contracts, attention to future movements is necessary."