[IPO] DND Pharmatech "Developing GLP-1 Class New Drugs... Leap to Global Biotech"

CEO Seulgi Lee of DND Pharmatech is introducing the company at a press conference for KOSDAQ listing held on the 17th in Yeouido, Seoul. / Photo by DND Pharmatech

"DND Pharmatech will continue to devote itself to research and development for the development of GLP-1 peptide new drugs that can provide real hope to patients with metabolic diseases, without losing the original intention as we have done so far."

On the 17th, DND Pharmatech (CEO Seulgi Lee), a bio company developing oral GLP-1 series obesity/MASH (metabolic dysfunction-associated steatohepatitis) new drugs, announced its strategy and vision for listing on the KOSDAQ market at a press conference held at the 63 Building in Yeouido.

GLP-1 (Glucagon-like peptide 1) is a type of hormone secreted from the small intestine when food is ingested, functioning to increase insulin synthesis and secretion, inhibit glucagon secretion, and delay the digestion and absorption process. Due to these characteristics, GLP-1 was initially developed as a diabetes treatment, and its applications have expanded to obesity treatments, MASH treatments, degenerative brain diseases, cardiovascular diseases, and other indications, growing into a large-scale market.

In particular, leading companies developing GLP-1 series drugs, Eli Lilly and Novo Nordisk, have surpassed Johnson & Johnson (J&J) to rank first and second in market capitalization among global pharmaceutical companies, growing into global mega-corporations.

Founded in 2014, DND Pharmatech is a specialized company developing chronic disease treatments using GLP-1 series peptides. The company is developing multiple innovative GLP-1-based new drugs, focusing on oral obesity treatments (DD02S, DD03), injectable MASH treatments (DD01), and degenerative brain disease treatments (NLY01).

DND Pharmatech has maximized the performance of oral GLP-1 drugs through peptide custom design technology that optimizes the drug efficacy and stability of GLP-1 itself, and formulation structure optimization technology that can increase oral absorption rate and medication compliance. Through these technologies, the company aims to achieve an oral absorption rate more than 10 times higher and lower production costs compared to Novo Nordisk’s only oral GLP-1 product, Rybelsus® (0.05~0.6%).

DND Pharmatech’s peptide oral formulation technology has been recognized for its value in the global competitive market, leading to a global license agreement for oral obesity treatments with the U.S. company Metsera, established by global investment institutions, in April last year. Additionally, in March, the company expanded the existing contract and signed a new license agreement for injectable obesity treatments, concluding a large-scale technology transfer contract worth approximately $800 million (about 1.05 trillion KRW) in total. Furthermore, unlike typical technology transfer contracts, DND Pharmatech secured additional revenue of at least 20 to 27 billion KRW by signing a separate joint research and development contract to lead development until clinical entry, apart from the technology transfer contract, until 2026.

DD01, which is being developed aiming to be a Best-in-Class MASH treatment, is a dual receptor agonist acting simultaneously on GLP-1 and glucagon receptors. In a U.S. Phase 1 clinical trial conducted last year on obese adults with diabetes and fatty liver disease, competitive clinical results were confirmed by removing more than 50% of fatty liver with only a short 4-week administration. Based on this, the company plans to conduct a Phase 2 MASH clinical trial in the U.S. in the first half of this year to confirm detailed drug efficacy over 48 weeks of administration. DD01 was designated as a Fast Track drug by the U.S. FDA in March, and it is expected to receive FDA support for faster progress in clinical development and approval review.

DD01 showed outstanding weight loss effects from the preclinical animal testing stage, and based on this, in September 2021, DND Pharmatech signed a license-out contract worth about 250 billion KRW with Salubris Pharmaceuticals, a Chinese metabolic disease specialist pharmaceutical company, for the Chinese region. Salubris plans to start a Phase 1 clinical trial targeting obesity indications in China in the second half of this year. In the future, DD01 is expected to be developed simultaneously as a MASH and obesity treatment, enabling confirmation of combined efficacy.

Seulgi Lee, CEO of DND Pharmatech, said, "DND Pharmatech has been a company focused on developing GLP-1 series peptide new drugs since its establishment," adding, "With this KOSDAQ listing, we will achieve rapid commercialization of GLP-1 series peptide new drugs centered on metabolic diseases represented by obesity and MASH, where unmet needs are high."