Alteogen Inc. Signs 4 Trillion Won Contract with Novartis: "ALT-B4's Scalability Draws Attention"

[Financial News] Daol Investment & Securities Co., Ltd. maintained its 'N/R (Maintain)' investment rating on Alteogen Inc., saying that the scope of application for its core platform, ALT-B4, could expand further after Alteogen Inc. signed a licensing agreement with Novartis worth up to $3.223 billion. No target price was provided.
On the 3rd, Lee Ji-soo, a researcher at Daol Investment & Securities Co., Ltd., said, "Alteogen Inc. signed an exclusive option and license agreement with Novartis for the development and commercialization of subcutaneous (SC) formulations for multiple biopharmaceuticals using recombinant human hyaluronidase (ALT-B4) based on the Hybrozyme platform," adding, "This agreement is significant because it demonstrates the potential for ALT-B4's scope of application to expand."
Under the agreement, Novartis secured exclusive rights to develop and commercialize multiple biopharmaceuticals in SC formulations using Alteogen Inc.'s ALT-B4.
If all options are exercised and all development and commercialization milestones are achieved, the contract value Alteogen Inc. could receive would be up to $3.223 billion (approximately 4.4 trillion won). In addition, royalties based on net sales after product commercialization will be paid separately.
The researcher particularly noted that the agreement covers multiple pipelines rather than a single product. Since Novartis has biopharmaceutical pipelines across various therapeutic areas, the analysis suggests that additional products using ALT-B4 could be added in the future.
ALT-B4 is a recombinant human hyaluronidase developed based on Alteogen Inc.'s Hybrozyme technology. It enables biopharmaceuticals that require intravenous (IV) administration to be converted to subcutaneous administration by temporarily breaking down hyaluronic acid, a major component of the extracellular matrix, thereby promoting the diffusion and absorption of co-administered drugs.
Alteogen Inc. is expanding its global business by successfully exporting its Hybrozyme platform technology four times this year alone.
Previously, Alteogen Inc. signed an agreement with GSK subsidiary Tesaro regarding the SC formulation of Dostarlimab and entered into an exclusive license agreement with Biogen Inc. Last August, it signed an additional technology transfer agreement with a global pharmaceutical company whose identity was not disclosed.
Including the Novartis agreement, the number of global pharmaceutical companies with which Alteogen Inc. has signed licensing agreements has increased to nine.
The researcher said that repeated agreements with global big pharmaceutical companies could create a virtuous cycle by increasing confidence in ALT-B4's platform technology. In fact, Alteogen Inc. has expanded its agreements with global pharmaceutical companies, including Novartis, following Merck Sharp & Dohme (MSD), AstraZeneca, GlaxoSmithKline plc (GSK), and Biogen Inc. This suggests that the business performance and references accumulated through existing agreements could have a positive impact on future partnerships.

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