Alteogen Signs Up to $3.22 Billion Licensing Deal With Novartis

Alteogen has inked a significant licensing deal with pharmaceutical behemoth Novartis, demonstrating the global prowess of its proprietary ALT-B4 technology for transforming intravenous drugs into subcutaneous formulations. The agreement, signed on September 2, grants Novartis exclusive rights to develop and market SC versions of its biologic drugs using Alteogen's ALT-B4 platform.

If all options are taken advantage of and development milestones are met, Alteogen could receive up to $3.22 billion, or approximately 4.42 trillion won. This deal marks Alteogen's fourth licensing agreement this year, with the company's cumulative maximum value of licensing deals surpassing $4.45 billion. In addition to milestone payments, Alteogen will also receive royalties based on the net sales of products using ALT-B4 after commercialization.

The technology, which involves temporarily breaking down hyaluronan beneath the skin to enhance drug diffusion and absorption, is pivotal to the deal. Alteogen CEO Jeon Tae-yeon highlighted the company's evaluation of ALT-B4 applications across various modalities prior to signing with Novartis, emphasizing the Hybrozyme platform's technological and commercial potential.

As global pharma firms strive for SC formulations to boost patient convenience and shorten administration times, Alteogen's platform technology is poised to see increased market interest. The Novartis agreement is Alteogen's second-largest deal to date, further underscoring the technological capabilities of South Korea's biotechnology industry on the global stage.