Alteogen signs deal with Novartis worth up to W4.4tr

Alteogen has signed a technology licensing deal with Novartis worth up to 4.4 trillion won ($3.21 billion) for subcutaneous injection formulation technology.

According to Alteogen on Thursday, the two companies concluded an option and license agreement for the development and commercialization of subcutaneous injection drugs based on ALT-B4, which incorporates Alteogen's Hybrozyme technology. Under the deal, Novartis secures exclusive rights to develop and commercialize subcutaneous formulations of multiple products using ALT-B4 through a series of options.

If all contract options are exercised and all development and commercialization milestones are met, Alteogen stands to receive up to $3.22 billion. The company will also receive separate royalties based on net sales following commercialization.

A key feature of the deal is that it is not limited to a single drug but is structured to allow Novartis to apply ALT-B4 across multiple biopharmaceuticals. As Novartis exercises options on more products and advances through development and commercialization stages, the milestones and post-commercialization royalties Alteogen can receive are designed to grow accordingly.

ALT-B4 — its active ingredient is berahyaluronidase alfa — is a recombinant human hyaluronidase developed on Alteogen's Hybrozyme platform. It converts intravenous biopharmaceuticals into subcutaneous formulations, which are relatively more convenient and faster to administer. The mechanism temporarily breaks down hyaluronic acid to promote the diffusion and absorption of co-administered therapeutics.

This marks the fourth ALT-B4 license agreement Alteogen has signed this year. The company has previously concluded Hybrozyme technology transfer deals with multinational pharmaceutical companies including MSD, GSK, AstraZeneca, Daiichi Sankyo, Sandoz and Intas. With Novartis now added as a partner, the global expansion of the Hybrozyme platform is expected to accelerate.

"Before signing the agreement, Novartis conducted evaluations on converting various modalities to subcutaneous formulations using ALT-B4," said Jeon Tae-yeon, chief executive of Alteogen. "This partnership is a meaningful achievement that again demonstrates the technological strength and commercial viability of Alteogen's Hybrozyme platform."