Alteogen's shares fell despite news of a technology transfer agreement worth approximately 32 trillion won with Swiss pharmaceutical company Novartis.
According to the Korea Exchange, as of 2:59 PM on September 3, Alteogen's stock was trading at 287,500 won, down 11,000 won (3.69%) from the previous trading day.
On September 2, Alteogen announced it had signed an exclusive option and license agreement with Novartis for ALT-B4, a hyaluronidase based on its Hybrozyme platform technology.
The agreement grants Novartis the rights to develop and commercialize subcutaneous (SC) formulations using ALT-B4. The total contract value could reach up to $3.223 billion (approximately 44 trillion won), which includes upfront payments, milestone payments based on development and commercialization stages, and additional payments for each product option exercised. Royalties from sales will be received separately.
ALT-B4 is a recombinant human hyaluronidase developed by Alteogen using its proprietary Hybrozyme platform technology. It is considered a key technology for converting intravenous (IV) medications to subcutaneous administration.
Analysts view the agreement positively, noting that Alteogen has secured a partnership with a major global pharmaceutical company.
Notably, the choice of ALT-B4 over Novartis's existing subcutaneous formulation technology, 'Enhanze,' indicates a preference for Alteogen's technology among global big pharma, according to analysts.
Samsung Securities stated that given Novartis's portfolio of blockbuster drugs for treating immune diseases, cancer, and immuno-oncology, there is potential for ALT-B4 to be utilized in the transition of key pipeline products to subcutaneous formulations.
However, the market has interpreted the lack of specific pipeline applications related to the large contract as a source of short-term uncertainty. It appears that profit-taking from the previous day's price increase, driven by the contract announcement, has also contributed to the stock's decline.
Reflecting the value of the Novartis agreement, Samsung Securities has raised its target price for Alteogen from 350,000 won to 370,000 won, an increase of 5.7%.
* This article has been translated by AI.
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