[Click eStock] "Alteogen, Keytruda SC Formulation Estimated Successful in US Phase 3 Clinical Trial"

Shinhan Investment Corp. raised Alteogen's target stock price to 730,000 KRW on the 13th. It is expected that the SC (subcutaneous injection) formulation of the immuno-oncology drug Keytruda, developed by the US mega pharmaceutical company Merck (MSD), has a high possibility of passing the US Food and Drug Administration (FDA) after succeeding in the US Phase 3 clinical trial.

Minyong Eom, an analyst at Shinhan Investment Corp., said, "On the 8th, Alteogen signed an exclusive contract with Daiichi Sankyo, the global No.1 company in antibody-drug conjugates (ADC), to convert the breast cancer treatment Enhertu ADC into an SC formulation for the first time worldwide," adding, "Enhertu is expected to generate about 20 trillion KRW in sales by 2030." He further predicted, "If sales exceed expectations due to improved efficacy or reduced side effects, it is possible to receive royalties exceeding 5%."

Analyst Eom stated, "At a recent analyst meeting, Alteogen revealed that it held a pre-meeting to apply for FDA approval of Keytruda SC and plans to submit the application around January next year," adding, "Considering this, it is estimated that Keytruda SC has succeeded in Phase 3 clinical trials, and FDA approval is highly likely next year."

He said, "The contract to convert Enhertu to SC with Daiichi Sankyo is expected to receive higher royalties than the Keytruda SC deal with Merck," and analyzed, "If commercialized with relatively low milestones (stage-based technology fees), profits are expected to increase further, and due to improved efficacy and side effects, the sales increase compared to Enhertu VI is likely to be greater, so premium royalties are anticipated."

He continued, "The sales target for Enhertu, which is reshaping the breast cancer treatment market, is expected to reach 16 billion USD (about 20 trillion KRW) by 2030," estimating, "If the efficacy and side effects of the SC formulation improve, most of the sales will shift to the SC formulation."