[Click eStock] "Ildong Pharmaceutical’s Low-Molecular-Weight Obesity Drug Valued at 1.5?4 Trillion Won... Major Pharma Eyeing the Deal"

On November 3, SK Securities stated that the value of Ildong Pharmaceutical’s low-molecular-weight GLP-1RA obesity treatment, 'ID110521156,' is currently significantly undervalued. The firm initiated coverage with a 'Buy' rating and set a new target price at 45,000 won. SK Securities assessed that Ildong Pharmaceutical’s market capitalization could be adjusted upward by at least twofold, reaching between 1.5 trillion and 4 trillion won, based on the scale of technology transfer deals for similar pipelines and the standards of competing companies.

Lee Seonkyung, a researcher at SK Securities, explained, "There is strong global demand for oral low-molecular-weight drugs," adding, "All major pharmaceutical companies, except Eli Lilly and Roche, are likely to be interested in securing oral low-molecular-weight obesity treatments."

She further emphasized, "This is particularly true for Pfizer, which recently experienced failure with its low-molecular-weight oral obesity drug; Novo Nordisk, which lacks its own pipeline and has fallen behind Eli Lilly in the competition; and AstraZeneca, which also recently faced clinical trial failures."

She analyzed, "Due to the failures of competitors, there are currently only about two pipelines in clinical stages worldwide, including Ildong’s, that could meet the demand from major global pharmaceutical companies. The supply is extremely limited compared to demand."

Lee also projected, "Given the current competitive landscape, Ildong’s ID110521156 could become the primary target for the first major licensing deal with a global pharmaceutical company."

She added, "Ascletis Bioscience, which has a pipeline similar to Ildong Pharmaceutical, recorded a market capitalization of 3.5 trillion won in August this year," and explained, "Among companies that have released clinical and preclinical data on low-molecular-weight oral GLP-1RA, Ildong’s 1156 has demonstrated the most outstanding efficacy and tolerability profile."

She analyzed, "Although it is difficult to estimate the current value of the ID110521156 pipeline due to limited information on the oral low-molecular-weight GLP-1 market, a conservative estimate puts its current value at 1.4 trillion won."

Lee explained, "Investor concerns about the development of low-molecular-weight oral obesity treatments are high due to Pfizer’s failure and disappointing data releases from Roche and AstraZeneca." She continued, "Most failures have been attributed to concerns about side effects caused by abnormal liver function." She added, "As a result, it is difficult to increase the dosage enough to induce sufficient weight loss effects." However, she emphasized, "Ildong’s ID110521156 has secured improved clinical data for all liver function indicators."

She expressed optimism, stating, "If market misunderstandings are resolved, Ildong Pharmaceutical’s market capitalization could be adjusted upward by at least twofold, reaching between 1.5 trillion and 4 trillion won."