Shinhan Investment Corp. announced on September 9 that it has lowered its target price for Alteogen from 540,000 won to 520,000 won after one of Novartis' antibody-oligonucleotide conjugates (AOC) failed to meet primary endpoints in a Phase 3 clinical trial. The firm maintained its 'buy' rating and its preference for the stock within the sector.
Research analyst Eom Min-yong stated, "On September 2, Novartis signed a technology transfer agreement worth 4.4 trillion won, and as a result of this outcome, the number of confirmed products for subcutaneous (SC) transition has changed from three to two." He added, "There are no changes to the terms of the Novartis contract due to this result."
Eom explained that among the three AOC products secured by Novartis, Del-desiran, a treatment for myasthenia gravis type 1 (DM1), did not achieve its primary endpoint in the Phase 3 trial. Although Del-desiran was initially considered a candidate for SC development based on its administration method of intravenous (IV) dosing every eight weeks for 54 weeks, its future development strategy remains uncertain, leading to its exclusion from the list of expected transition products.
However, he assessed that the development of the remaining AOC products is progressing well. Eom noted, "Del-zota, for which FDA approval has been applied, is on track for approval in the first half of 2027, and there are no changes to the SC development plan." He also mentioned that Del-Brax is being developed with a revenue target of up to $4 billion, and the SC development value of the two AOC substances continues to be reflected.
He projected that the impact on the contract itself would be limited, stating, "There will be no return of contract fees or reductions or changes to the existing contract due to the failure of Del-desiran," and he confirmed that the estimated outlook for the development of a total of 10 products, including antibody-drug conjugates (ADCs) and bispecific antibodies, remains unchanged.
* This article has been translated by AI.
Copyright ⓒ Aju Press All rights reserved.