Hall of Shame

Energy

PeptiDream Inc (4587 JP)

Year: 2019

PeptiDream Inc. operates as a biopharmaceutical company. The Company employs its proprietary Peptide Discovery Platform System (PDPS) Technology, a revolutionary next-generation hit finding platform for new drugs. PeptiDream engages in drug discovery joint research and development, PDPS technology loan and license, pipeline expansion, and other businesses.

PeptiDream Inc, listed in August 2013 on the Tokyo exchange (TSE) and raised JPY 7.76B. 

On November 7, 2019, Muddy Waters published a report, "PeptiDream: A Sportscar Without Wheels", shorting PeptiDream, Inc.  They believe it is more stock story than substance, and the market is deluded as to its potential for commercializing drugs.  PeptiDream touts its 19 major partnerships and 101 discovery programs, but half of its partnerships are likely effectively dormant or dead. They see it being highly unlikely that the company’s own development attempts ever yield significant revenue. PeptiDream’s recent shift in focus to developing its own pipeline recalls once-beloved Sosei Group Corporation (“Sosei”), which has lost significant market cap over the past three years. We forecast PeptiDream will have at most one drug commercialized by 2027, versus investor expectations of eight to 15 by then.  To even remotely justify investor expectations, PeptiDream would likely need to succeed in meeting drug development milestones at rates many times industry norms. But to date, PeptiDream has underperformed these industry norms, despite being in operation since 2006.


Muddy Waters:  PeptiDream: A Sportscar Without Wheels - Nov. 7, 2019

Reuters: Biotech-for-hire PeptiDream charts new path and becomes short target - Nov.13, 2019

PeptiDream : Annual Report 2018

 

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