Alteogen's corporate value could be reassessed as its subcutaneous (SC) formulation platform wins additional licensing deals, according to a new analysis. As Novartis accelerates efforts to convert intravenous (IV) antibody-oligonucleotide conjugate (AOC) therapies into SC form, the scope for applying Alteogen's technology is expected to widen.
Shinhan Securities said in a report on the 3rd that up to 10 compounds are expected to be covered under the Novartis contract, and that if development of all 10 products is confirmed, additional upfront payments of more than 200 billion won could be recognized. The brokerage said the partnership with Novartis would also underscore the necessity of SC conversion to other global gene therapy companies.
Alteogen (196170) signed an option and license agreement with Novartis on the 2nd for the development and commercialization of SC formulation drugs based on ALT-B4, which uses the company's Hybrozyme technology. The deal is worth up to $3.223 billion (about 4.4165 trillion won), making it the second-largest technology export in Alteogen's history. The company has signed four licensing deals this year alone and aims to add more in the second half.
Novartis has recently been strengthening its AOC pipeline while also moving faster on SC formulation conversion. In October last year, it agreed to acquire Avidity Biosciences, a developer of AOC and gene therapies, for $12 billion (about 16.4 trillion won).
Shinhan Securities forecast that delzota, the leading candidate in Avidity's AOC pipeline, would win approval in the first half of next year. Follow-on candidates del-desiran and del-brax are expected to be approved in 2029, with combined annual sales for the products projected to exceed $10 billion.
Shinhan Securities maintained its "buy" rating on Alteogen and raised its target price to 540,000 won. The brokerage said the company had pioneered SC development for AOC gene therapies after developing the world's first SC antibody-drug conjugate (ADC), adding that it had completed a record four licensing deals this year and that positive catalysts, including further technology transfers, would continue through the rest of the second half.
