Peptron recorded a limit low in early trading on the 4th. Peptron signed a technology evaluation contract with Eli Lilly for its 'smart depot' technology, which extends the duration of a drug's effects using biodegradable polymers; however, news recently emerged that Eli Lilly formed a new contract with another corporation.
As of 9:23 a.m. on the day, Peptron recorded a limit low of 161,000 won, down 69,000 won (30.00%) from the previous transaction.
The sharp decline in Peptron's stock is due to increasing uncertainty regarding its collaboration with its major partner, Eli Lilly. Eli Lilly recently entered into a technology transfer agreement with Swedish biotech company Camurus. Camurus is transferring long-term treatment technology for cardiovascular and metabolic disease drugs.
Investors are concerned that the overlapping technology areas of Peptron and Camurus will affect the main contract of Peptron, which is currently undergoing technology evaluation. However, Peptron maintains that this contract is unrelated to its own agreements.
Peptron announced its position through its homepage on the day, stating, "The technology evaluation for the development of long-acting obesity treatments with Lilly is ongoing at this moment and is progressing smoothly," and noted, "Lilly's new contract with another company differs from our platform, the smart depot's spray-drying method."