Alteogen has entered an option and license agreement with Novartis that could generate up to $3.223 billion for the South Korean biotechnology company if all options are exercised and all related milestones are achieved.
The agreement gives Novartis multiple options to secure exclusive rights to develop and commercialize subcutaneous formulations of several Novartis products using Alteogen’s ALT-B4 enzyme, also known as berahyaluronidase alfa. The potential value includes option-exercise fees, development and commercial milestone payments, and royalties on net sales of any products marketed under the agreement.
The companies did not identify the Novartis medicines covered by the deal, disclose the number of options available or provide a timetable for potential option exercises, clinical development or product launches.
ALT-B4 is a proprietary recombinant human hyaluronidase developed using Alteogen’s Hybrozyme platform. The enzyme is intended to enable the conversion of biologic medicines that are ordinarily delivered through intravenous infusions into subcutaneous formulations administered under the skin.
The technology works by temporarily breaking down hyaluronan in the extracellular matrix, which can facilitate the dispersion and absorption of a co-administered therapeutic. Alteogen said the approach is designed to support rapid, high-volume subcutaneous administration of medicines otherwise given intravenously.
Subcutaneous formulations can offer an alternative to infusion-based delivery by changing how a medicine is administered. Alteogen said Novartis evaluated ALT-B4 for potential use across multiple modalities in subcutaneous formulation development.
The Novartis agreement is Alteogen’s fourth licensing transaction announced this year involving its Hybrozyme platform. Tae-Yon Chun, Alteogen’s chief executive, said the deal reflects the platform’s technology and commercial potential.
Alteogen develops biologic medicines and drug-delivery technologies. Its portfolio includes antibody-drug conjugates, biobetters and biosimilars, as well as clinical-stage long-acting therapeutic proteins and next-generation antibody-drug conjugates developed through its NexP-fusion and NexMab platforms.
Founded in 2008, Alteogen is listed on the KOSDAQ market in South Korea.
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