Alteogen signs Novartis deal worth up to $3.223 billion for ALT-B4

  • Alteogen signed an ALT-B4 option and license agreement with Novartis.
  • The deal is worth up to $3.223 billion if options and milestones are met.
  • Alteogen shares rose 1.3% to 302,500 won in September 3 trading.

Alteogen shares advanced in early trading after the KOSDAQ-listed biotech disclosed an option and license agreement with Novartis for subcutaneous formulations using ALT-B4. As of 9:06 a.m. on September 3, the stock was at 302,500 won, up 4,000 won, or 1.3%, from the prior close. The September 2 agreement covers development and commercialization of medicines using ALT-B4, a recombinant human hyaluronidase from Alteogen’s Hybrozyme platform that can help convert intravenous therapies into subcutaneous forms, and carries a maximum value of $3.223 billion, or about 4.4165 trillion won, if all options are exercised and development and commercialization milestones are met. Shinhan Securities said as many as 10 compounds could be covered and raised its target price to 540,000 won while maintaining a buy rating. The contract is Alteogen’s second-largest technology export and its fourth licensing agreement this year; maximum value is not guaranteed revenue and depends on option exercises, development, approvals and commercial performance.

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