"D&D Pharmatech Raises Expectations for Technology Transfer of MASH Treatment DD01"

On June 25, independent research firm Growth Research evaluated D&D Pharmatech, stating that the company is increasing the possibility of global technology transfer through the results of a Phase 2 clinical trial biopsy for its lead pipeline candidate, DD01, an investigational treatment for metabolic dysfunction-associated steatohepatitis (MASH).

DD01, the core asset of D&D Pharmatech, is a once-weekly subcutaneous injection therapy that simultaneously targets GLP-1 and glucagon receptors. In this Phase 2 trial, the company secured 48-week biopsy data and succeeded in overcoming the critical hurdle of "fibrosis improvement," which is considered the greatest challenge in the development of new MASH treatments. This is seen as a key factor in enhancing the company's value.

The main growth driver going forward will be whether a global technology transfer deal is successfully concluded. In Phase 2, D&D Pharmatech achieved statistical significance in composite endpoints including MASH resolution without worsening of fibrosis, improvement of fibrosis without worsening of MASH, and meeting both criteria. This provides clinical evidence that the treatment can reverse core lesions of the disease, beyond merely reducing simple steatosis, which is expected to give D&D Pharmatech a strong advantage in future technology transfer negotiations with global pharmaceutical companies.

However, the time lag until the actual signing of a technology transfer agreement and the cautious interpretation of clinical data are acting as discount factors. The report pointed out that, as the current results are based on a small-scale Phase 2 trial, whether the same efficacy and safety are reproduced in a larger Phase 3 trial will be critical for commercial success. It also explained that, due to differences in trial stages and patient populations, it is difficult to make simple numerical comparisons with competing drugs, and thus additional verification processes should be monitored conservatively going forward.

Yonghee Han, a researcher at Growth Research, stated, "D&D Pharmatech has emerged as a company possessing a rare Phase 2 or later-stage MASH candidate amid the competition among global pharmaceutical firms to secure MASH assets," and added, "The point at which the excellence of the data leads to an actual technology transfer agreement will mark the phase of a full-fledged corporate value re-evaluation."

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