Muddy Waters Capital is short PeptiDream, Inc. because we 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. We 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.