D&D Pharmatech is expanding expectations for a technology transfer (L/O) with global pharmaceutical companies by releasing additional clinical data for its Metabolic Dysfunction-Associated Steatohepatitis (MASH) treatment candidate.

In a report, Kiwoom Securities evaluated, "Following the top-line presentation at the European Association for the Study of the Liver (EASL), the company disclosed additional data through an investor relations (IR) session on the 11th," adding, "As consistent fibrosis improvement effects were confirmed across three independent analytical methods, the credibility of the clinical results has further increased." CEO Lee Seul-gi attended the IR session in person to introduce the additional analysis results, and the company explained that the level of efficacy demonstrated for the candidate substance has been significantly strengthened through this.

Kiwoom Securities paid particular attention to the possibility of technology transfer negotiations with global pharmaceutical companies. The securities firm projected, "Expectations in the market will likely grow regarding which global pharmaceutical company will participate as a partner, along with the structure of the future technology transfer contract." Market interest is also focused on the likelihood that discussions regarding business cooperation or technology export with global big pharma will begin in earnest, based on the clinical data secured by D&D Pharmatech.

Meanwhile, following its recent surge in stock price and subsequent removal from the investment warning list, D&D Pharmatech is now facing the possibility of being redesignated as an investment warning stock. The Korea Exchange (KRX) guidelines state that a stock can be redesignated if its price surges within a certain period after being removed from the investment warning list. If redesignated as an investment warning stock, investors should be mindful of expanded short-term stock price volatility and investment risks.

A securities industry official said, "While clinical achievements and expectations for a technology transfer are being reflected in the stock price, there is also a possibility of redesignation as an investment warning stock, which requires a cautious approach from investors."