Alteogen (196170.KQ) has raised a total of 200 billion won ($140 million) to build a biopharmaceutical plant in Daejeon and diversify its business.
The company said on the 6th that it will issue 200 billion won worth of preferred shares to SkyAlt, a vehicle jointly set up by the National Growth Fund and Skylake Equity Partners. The issuance consists of 100 billion won in convertible preferred shares and 100 billion won in redeemable convertible preferred shares. The redeemable convertible preferred shares were priced at a 10.3% premium to the reference price.
Alteogen plans to use the proceeds to acquire new products and technologies. The company has built a business model centered on milestone payments and royalties from ALT-B4, a platform used to convert drugs into subcutaneous formulations. It has signed licensing deals with 10 global drugmakers including MSD, AstraZeneca, Sanofi and Novartis, and currently collects sales royalties on products such as Keytruda Qlex that use its technology.
"We expect milestone payments and royalties to keep flowing in through the ALT-B4 business," Chief Executive Jun Tae-yeon said. "But rather than relying on a single platform, we decided it was important to start securing new growth drivers for the company's future now."
Part of the funds will go toward the new production plant in Daejeon. Alteogen has a contract to supply MSD with ALT-B4 for Keytruda Qlex and currently delivers the material through an outside contract manufacturer. At the new plant, the company plans to produce ALT-B4 as well as an Eylea biosimilar and new drugs it develops in the future.
Skylake is a South Korean private equity firm with 3.5 trillion won in assets under management. It secured about 200 billion won in policy funds this year after being selected as an external manager for the National Growth Fund's large-cap track. "Alteogen is the first portfolio company of the fund we have just raised," Skylake Chief Executive Min Hyun-ki said. "We expect Alteogen to secure new growth drivers and become a global biotech company."
