Alteogen Inc. posts 152.4 billion won in operating profit through Q3, surpassing last year's full-year results

[Financial News] Alteogen Inc. surpassed its full-year results for last year in just the first three quarters of this year. As commercialization of its proprietary technology for converting drugs to a subcutaneous (SC) formulation gains momentum, and a new licensing deal with a global pharmaceutical company adds to the mix, the scale of its earnings generation is growing rapidly. The significance lies in the expansion of a business model once centered on licensing deals into one linked to actual sales of partner products.
Alteogen Inc. said on the 3rd that it recorded revenue of 260.3 billion won, operating profit of 152.4 billion won and net income of 143.5 billion won on a consolidated basis for the first three quarters of this year. The figures were up 72.0%, 74.6% and 102.8%, respectively, from the same period a year earlier. In just three quarters, the company surpassed both its full-year revenue of 215.9 billion won and operating profit of 106.9 billion won last year.
Third-quarter results also reached record highs. Revenue came to 119.8 billion won, surpassing 100 billion won in quarterly revenue for the first time since the company was founded, while operating profit hit a quarterly record of 78.9 billion won.
Commercialization of the Hybrozyme technology platform, a core technology, and the expansion of licensing deals drove the growth. KEYTRUDA QLEX, the subcutaneous formulation of the immuno-oncology drug Keytruda marketed by global pharmaceutical company Merck Sharp & Dohme (MSD), generated cumulative sales of $1.42 billion through the third quarter of this year, increasing the sales milestone payments due to Alteogen Inc.
Two new licensing deals were added. Alteogen Inc. signed a deal in August with an undisclosed global pharmaceutical company to develop and commercialize a subcutaneous formulation, worth up to $365 million, followed by a deal with Novartis in September worth up to $3.223 billion. As a result, by the end of the third quarter this year, the total number of licensing deals related to the Hybrozyme technology platform had risen to four, with a combined value of up to $4.452 billion. This is the maximum amount the company could receive if it meets the conditions at each development, approval and sales stage; royalties after commercialization are separate.
Alteogen Inc. is also expanding its production base to meet growing business demand and developing next-generation technologies. In August, it decided to invest 253.2 billion won to build a biopharmaceutical manufacturing facility in the Dungok District of Daejeon, and in September it filed an international patent application for an ultra-long-acting drug delivery platform. Animal study results for ALT-M5, an obesity drug candidate being developed using the technology with the goal of once-monthly dosing, are set to be presented at a U.S. obesity conference in November.
Alteogen Inc. CEO Jeon Tae-yeon said, “The commercialization performance of our partners’ products and new licensing deals have both supported our results. We will strengthen the foundations for medium- to long-term growth by securing production capacity while also developing next-generation platforms and new drugs.”
[email protected] Jung Sang-hee Reporter