AstraZeneca Technology Export Upfront Payment
ALT-B4 Commercialized Substances Drive Major Sales
On May 13, Alteogen, a bio-platform company, announced through a public disclosure that its consolidated first-quarter results recorded sales of 83.7 billion KRW and operating profit of 61.0 billion KRW, marking its highest-ever quarterly sales. Compared to the same period last year, sales increased by 139.8% and operating profit by 253.5%.
The company explained, "This performance was primarily driven by the upfront payment from the technology licensing agreement with global pharmaceutical company AstraZeneca and product sales from supplying ALT-B4 commercialized substances."
The technology licensing agreement signed with AstraZeneca in March grants exclusive rights to use ALT-B4 in three anticancer drugs. The total deal is valued at 1.35 billion USD (approximately 1.9136 trillion KRW), with the upfront payment alone reaching 45 million USD (about 63.7 billion KRW), the largest in Alteogen's history. In addition, as the first subcutaneous injection-type therapy using ALT-B4 is about to be commercialized, Alteogen supplied hyaluronidase raw materials to its partner company, resulting in related product sales of approximately 10 billion KRW.
A company representative stated, "The progress of the Hybrozyme platform and the success of technology licensing have been positively reflected in this quarter's results," adding, "With the launch of Tergaze, the standalone ALT-B4 product, and the inflow of royalties from the Herceptin biosimilar ALT-L2 currently being sold in China, our stable revenue base is gradually expanding. This is materializing our vision to become a global biopharmaceutical company, surpassing the boundaries of a typical biotech firm."
Currently, Alteogen has licensed the rights to develop subcutaneous injection-type therapies based on the Hybrozyme platform to six global pharmaceutical companies. This year, the company anticipates the launch of 'Keytruda,' the first subcutaneous anticancer drug using this technology.
The phase 3 clinical results of Keytruda are regarded as evidence that the safety and technological capabilities of the Hybrozyme platform have been validated at a level recognized by the global market. Meanwhile, as the Inflation Reduction Act (IRA) strengthens Medicare drug price negotiation policies and demand for subcutaneous injection-type therapies increases, the necessity and market potential of ALT-B4 are also expanding. To provide effective intellectual property (IP) protection strategies to partners and potential partners, the company plans to register a substance patent for ALT-B4 in the United States this month. Alteogen also intends to maintain and extend its exclusivity through additional patent applications and the expansion of existing patents.
Alteogen stated, "Amid these trends, we are targeting more than two Hybrozyme platform technology licensing deals annually, and we expect to establish ourselves as a biopharma company with stable sales starting next year."
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