As the domestic pharmaceutical and bio sector faces a downturn this year, Alteogen is performing well with its ALT-B4 subcutaneous injection conversion platform. However, a patent dispute in Europe that bans the sale of the subcutaneous formulation of Keytruda remains a variable, raising questions about whether the company can maintain its upward trajectory in the second half of the year.
According to industry sources on October 26, Alteogen has signed contracts this year for ALT-B4, which converts intravenous injections to subcutaneous ones, with GlaxoSmithKline's subsidiary Tessa in January, Biogen in March, an undisclosed global pharmaceutical company in August, and Novartis in September. This marks four contracts this year, with a maximum contract value reaching 6.22 trillion won.
The company's financial performance is also promising. According to FnGuide, Alteogen's third-quarter revenue consensus is projected at 116 billion won, a 136.67% increase compared to the same period last year, while operating profit is expected to rise by 185.71% to 76.2 billion won. This growth is attributed to the rapid increase in sales of MSD's Keytruda Qurex, which utilizes ALT-B4. Alteogen is expected to announce its third-quarter results in the third week of next month.
Alteogen is also expanding the application of its technology. The company revealed animal test results at the European Society for Medical Oncology (ESMO) conference in Madrid, showing that ALT-B4 can convert antibody-drug conjugates (ADCs) to subcutaneous injections. The results indicated that drug absorption is similar to intravenous injections while showing a tendency to reduce side effects.
However, risks remain. On October 7, a court in The Hague, Netherlands, ruled based on a competitor's patent from Halozyme, banning the manufacture, sale, and import of the subcutaneous formulation of Keytruda in eight European countries, including Belgium, France, and Italy. Alteogen stated that the revenue share from these eight countries is not significant, so the impact is limited. Its partner, MSD, is reportedly considering an appeal and other follow-up actions in response to the ruling.
Kim Seon-a, a researcher at Hana Securities, pointed out that "the European court did not sufficiently review the grounds for patent invalidation." She added, "As invalidation lawsuits are ongoing in various European countries, the situation could change as early as next year, and the likelihood of the dispute spreading to the U.S. is low."
The market expects Alteogen's royalty income to continue. IBK Investment & Securities estimates that royalties from Keytruda Qurex could reach $460 million (approximately 644 billion won) by 2030. Additionally, there are expectations that as subcutaneous formulations of partner products like Dupixent and Enhertu are commercialized following Keytruda Qurex, royalty income could surge.
According to industry sources on October 26, Alteogen has signed contracts this year for ALT-B4, which converts intravenous injections to subcutaneous ones, with GlaxoSmithKline's subsidiary Tessa in January, Biogen in March, an undisclosed global pharmaceutical company in August, and Novartis in September. This marks four contracts this year, with a maximum contract value reaching 6.22 trillion won.
The company's financial performance is also promising. According to FnGuide, Alteogen's third-quarter revenue consensus is projected at 116 billion won, a 136.67% increase compared to the same period last year, while operating profit is expected to rise by 185.71% to 76.2 billion won. This growth is attributed to the rapid increase in sales of MSD's Keytruda Qurex, which utilizes ALT-B4. Alteogen is expected to announce its third-quarter results in the third week of next month.
Alteogen is also expanding the application of its technology. The company revealed animal test results at the European Society for Medical Oncology (ESMO) conference in Madrid, showing that ALT-B4 can convert antibody-drug conjugates (ADCs) to subcutaneous injections. The results indicated that drug absorption is similar to intravenous injections while showing a tendency to reduce side effects.
However, risks remain. On October 7, a court in The Hague, Netherlands, ruled based on a competitor's patent from Halozyme, banning the manufacture, sale, and import of the subcutaneous formulation of Keytruda in eight European countries, including Belgium, France, and Italy. Alteogen stated that the revenue share from these eight countries is not significant, so the impact is limited. Its partner, MSD, is reportedly considering an appeal and other follow-up actions in response to the ruling.
Kim Seon-a, a researcher at Hana Securities, pointed out that "the European court did not sufficiently review the grounds for patent invalidation." She added, "As invalidation lawsuits are ongoing in various European countries, the situation could change as early as next year, and the likelihood of the dispute spreading to the U.S. is low."
The market expects Alteogen's royalty income to continue. IBK Investment & Securities estimates that royalties from Keytruda Qurex could reach $460 million (approximately 644 billion won) by 2030. Additionally, there are expectations that as subcutaneous formulations of partner products like Dupixent and Enhertu are commercialized following Keytruda Qurex, royalty income could surge.
* This article has been translated by AI.
Copyright ⓒ Aju Press All rights reserved.